YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE WWW.FRANCHISEBUSINESS.COM.AU
NOV/JAN 2021-2022
ISSUE 34 VOL 04
AUS $6.95|NZ $7.95
Empire building How one McDonald’s franchisee is achieving financial freedom
BE YOUR OWN BOSS FOR
LESS THAN $150K! IS THIS THE NEXT F45? Celebrity trainer’s fab new concept revealed
PUTTING THE SPOTLIGHT ON:
Pizza | Logistics | Construction | Travel
Further changes are in the wind for franchisors with proposed amendments to the Franchising Code that may implement a Franchise Disclosure Register by 31 March 2022. The proposed amendments are in the consultation stage and are yet to be accepted. The Exposure Draft Explanatory Statement states the intention is to improve franchisee information and awareness through the introduction of a Franchise Disclosure Register. The Register will be administered by the Australian Small Business and Family Enterprise Ombudsman. The proposed amendments require franchisors to upload their business information and a disclosure document for their franchise systems on the Register before 1 November 2022. This is yet another layer of disclosure for franchisors if the proposed amendments are adopted. It is also an ongoing obligation as it is proposed that franchisors update each year the information and disclosure document provided for publication on the Register, and to provide information on the Register about materially relevant facts such as changes in majority ownership of the franchisor and matters relating to proceedings against the franchisor which are not required to include in the disclosure document. This adds to the current obligation of franchisors to give prospective franchisees a disclosure document before they sign a franchise agreement and to update their disclosure document each year. The amendments seek to impose a civil penalty of up to a maximum of 600 penalty units for noncompliance which shows how serious the Government is about the issue of franchisor disclosure. Franchisor disclosure is a serious matter. If in doubt about disclosure obligations, franchisors should seek legal advice.
CONTACT US 07 3221 2221 | info@morganmac.com.au
CONTENTS
REGULARS
LEADERSHIP
07 EDITORIAL 08 GLOBAL EYE 10 INSIGHTS 14 THE LIST 66 GLOSSARY 68 BUYING PROCESS 69 INFLUENCERS 70 CHECKLIST 71 RESOURCES 72 A-Z LISTINGS
16 COVER STORY
SPECIAL FOCUS
22 FITNESS WITH FLEX
36 BE YOUR OWN BOSS FOR LESS THAN $150,000
24 MEGA ANNIVERSARY
McDonald’s franchisee building the dream.
26 HOT CHICKEN GETS A ROASTING This emerging fast food franchise has a Korean twist.
28 MISTER FIXIT
Outstanding franchisee performance at Mister Minit.
20 IS THIS THE NEXT F45?
Celebrity trainer and F45 co-founder’s new gig. Two brand new concepts launch in wellness space.
30 A LIFESIZE EXPERIENCE
Unique business model turns building plans into a full-scale walkthrough experience.
Megasealed celebrates 25 years.
Check out these affordable franchise options.
32 EXCITING NEW OPPORTUNITIES!
SPOTLIGHT: FOOD
Latest brands offer Aussies the chance to be their own boss in arts and science.
SPOTLIGHT: TRAVEL & TOURISM 48 ROOM TO GROW
What’s the prospect for businesses in the Australian tourism sector?
38 IT’S AMORE
50 WELLNESS AT HOME AND AWAY Consumers are spending on wellbeing.
How to grab a slice of the piping hot market.
SPOTLIGHT: LOGISTICS
SPOTLIGHT: CONSTRUCTION
44 PACKED WITH POTENTIAL
51 BUILDING THE FUTURE
The logistics business is thriving with deliveries at an all-time high.
What the latest report reveals about the construction industry.
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FRANCHISE BASICS 53 GROWING IN THE RIGHT LOCATIONS How to find the best site for your new franchise business.
56 STRUCTURING YOUR FRANCHISE BUSINESS FOR SUCCESS
Understanding the business model and how it can impact your business.
60 10 THINGS TO CONSIDER
What you need to know before partnering to buy a franchise.
62 VACCINES IN THE WORKPLACE
Can you mandate the Covid vaccine?
Safety Solutions
Become a BCMC Safety Solutions Franchisee & reap the rewards BCMC Safety Solutions provides real estate agents and property managers with a cost effective alternative to managing their property’s smoke alarm and safety compliance. We provide our franchisees with top level training as well as a full suite of skills needed to enable them to become a successful and profitable business.
Why join us? BCMC Safety Solutions will provide you with . . . • An exclusive marketing territory that you own;
• All invoicing taken care of by head office;
• Be your own boss and work your own hours;
• Comprehensive franchise operations manual;
• Up to 2 weeks comprehensive training (4-5 days at head office and a weeks work experience with a selected franchise);
• Access to our franchise intranet with a complete range of business and marketing templates;
• Automated job booking and scheduling system;
• Online BCMC Portal that Integrates with many leading softwares.
For more information call our head office on 1300 69 80 40 or our franchise manager Brendon directly on 0429 616 799
VET3950
If you are highly motivated to achieve, then join BCMC.
EDITORIAL
Blue skies ahead for 2022 Is the cloud lifting? Could we be finally coming out of lockdowns? Will Aussies be able to look ahead with confidence and plan for the future? At time of writing, it certainly feels as though there is a clearer horizon and by the time you are reading this, life may be looking quite a bit freer for many of us. Perhaps the waiting game is over. Talking to a number of people in the franchising sector recently, there’s a view that there’s really no better time to be launching yourself into business. There is an expectation that with greater freedoms, the removal of state border closures and the opening up of Australia to returning citizens, international students and visitors, confidence will lift and businesses want to be ready to capitalise on this surge in enthusiasm. Savvy individuals will be looking at opportunities now as it can often take three to six months to get a business up and running, particularly if it’s in retail, hospitality or fitness. It’s exciting to see new brands coming into the marketplace, providing fresh ideas and concepts. Energetic young brands, well-honed traditional franchises, and tough survivors – they all offer something for a keen investor and you can read about some of them in this edition; we also take a look at a few options that fit into a $60,000 to $100,000 budget. We’ve survived 2020 and 2021 – here’s to an outstanding 2022. It’s up to us to make it happen. Are you ready?
EDITOR
Sarah Stowe P: 02 8224 8371 sarah.stowe@octomedia.com.au
SUB-EDITOR Karen Gee
HEAD OF SALES
Advertising coordinator
Simone Lagudi P: 02 8224 8375 simone.l@octomedia.com.au
Sarah Stowe Editor
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GLOBAL EYE
BUSINESS IS BOOMING Fresh ideas and familiar faces are driving franchise growth.
HOME BUILDER AND RENO FIRM KEEN TO RECRUIT FRANCHISEES Integrity New Homes is on a national recruitment drive to attract would-be business owners to its home building and renovation franchise. The nine-year-old firm wants to add to its network of 40 franchises and is searching for ambitious individual builders, husband-and-wife teams, or entrepreneurs keen to invest in an established brand with a personal touch. Builder and founder and director of Integrity Franchising, Glenn Leet, told Inside Franchise Business, “The difference with our business is business coaching. I personally business coach each franchisee. It’s an ongoing commitment to personal and professional
improvement and they need to sign up to that.” The recruitment drive is national with a focus on regional areas including Bendigo, Dubbo, Gladstone, Mackay, Mildura, Orange, Shepparton and Townsville, as well as capital cities Adelaide and Darwin. Franchisees can expect to pay $30,000 + GST for a regional territory, which increases to $50,000 + GST for a metro business, with an opportunity to pay this off through a 12-month payment plan. And while the business model appeals to solo builders who see the benefits of a franchisor’s support and systemised
processes, the franchise is open to non-builders too. “You do not need to have a builder’s licence to be eligible for a franchise. Some of our builders have years of experience while others are just
starting their business journey,” explains Glenn. Builders and tradespeople without the appropriate licence may be able to operate under the licensing umbrella of Integrity Franchising. n
GELATISSIMO TARGETS NEW STORES It’s full steam ahead for Aussie gelato brand Gelatissimo, which is looking to Queensland and northern NSW destinations for store growth. Earlier this year the business announced its 12-month target of 10 new outlets to open. Now Gelatissimo CEO, Filipe Barbosa, has pinpointed particular regions where expansion is on the cards.
“Both Queensland and locations throughout Northern NSW are particularly strong targets as they tick the boxes of sunshine and leisure. We are therefore targeting areas like Brisbane and the Gold Coast for these reasons, but equally destinations like Hervey Bay and Far North Queensland have appeal as we love to be the local player in these towns,” Filipe says. Franchisees can expect to see the
popular gelato franchise expand its horizons overseas too, giving a global profile to the brand. “Global expansion is at the heart of our strategic plan for 2021–22,” says Filipe. Right now there are 41 stores across Australia and in 24 overseas locations including Singapore and China. Look out for Gelatissimo in the US too. n
NEW CEOS
Tile retailer Amber has appointed a new boss, Peter Sinodinos, who brings both franchising and retail experience to the role. Peter was CEO at Snap Print & Design for two years.
A new San Churro CEO has been appointed as founder and current CEO Giro Maurici steps into a new role as managing director. Kerri Wane will focus on delivering profitable, sustainable network growth.
A new boss took the reins at Pack & Send in September as founder and CEO Michael Paul retired after 28 years at the helm of the international logistics business. Nicholas Woodward, who has been with the brand since 2005 and was the franchise firm’s chief operating officer, has taken on the new role of country manager.
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Domino’s veteran, multi-award winner and current franchisee, David Burness, is the new CEO for Australia, New Zealand. David started as a delivery driver, has been a franchise consultant, chief operating officer for Domino’s Netherlands and a multi-unit franchisee.
US BOXING CHAIN PLANS 100 OUTLETS FOR AUSTRALIA US boxing sensation Rumble has arrived in Australia and has already signed up 10 sites to franchisees in Sydney, Melbourne and Queensland, the first step to reaching its five-year goal of 100 studios Downunder. A-listers such as Justin & Hailey Bieber, Selena Gomez, Kendall Jenner, Jason Derulo, David Beckham, and Kevin Hart have all worked out at Rumble. Former F45 franchise owners and
well-known entertainment industry duo, the Stafford Brothers, have already signed up to operate a studio on the Gold Coast, and to promote Rumble in Australia. Rumble is owned by the largest boutique fitness franchisor in the US, Xponential Fitness, Inc, which also has CycleBar and StretchLab in its portfolio. Boutique Fitness Studios has the rights to franchise the three brands in Australia. n
X-GOLF ANNOUNCES 100-SITE EXPANSION Leisure and sports business X-Golf plans to open 100 venues across Australia within five years. “Interest in virtual sports and simulators is exploding. People have identified the indoor entertainment trend is on the up,” says newly appointed head of development at X-Golf, Ben Hatten. X-Golf simulates a game of golf, provides coaching tips, and allows players to enjoy the challenge of courses from around the world and to join leagues. “You’ve got people who love golf, but this isn’t solely about golf, it’s sport, leisure and entertainment. It’s not for the golf purist.
IN BRIEF Quest Apartment Hotels has been awarded a 5-star rating for its franchise system for the third successive year. BK’s Gymnastics has inked a deal to fast-track growth in Queensland, partnering with a Toowoomba gymnastics club, Allstars, in a joint venture.
You can play indoors and have some fun with friends,” Ben says. As a franchise venture, each venue hosts six simulators, includes a bar serving drinks and food, has low costs of goods and requires minimal staffing, explains Ben. Right now the business is powering in Queensland and Western Australia, with record numbers being achieved. “WA is doing record weekly numbers, Cairns is doing really well, and we’re opening up in Toowoomba, North Lakes and Townsville.” Next in the expansion plan is South Australia, with development of Sydney and
Melbourne scheduled once lockdowns ease. “X-Golf can be run as an owner-operator or as an investor model and we’ll manage it on your behalf,” he says. There’s growth within the franchisee network too: of the 13 franchises in the business, four are about to take on second sites. n
HR DEPT SEES RECORD GROWTH HR professionals who have joined the HR Dept network are reporting excellent revenue growth in the last nine months. Managing director, Pia Engstrom, who in October 2020 took over full ownership of the Australian business (HR Dept is a UK-based business model), says, “While the increase in revenue from the franchisees is outstanding, another pleasing aspect of their performance has been the encouraging increase in retained clients. “This demonstrates that our franchisees are
Wallabies star joins Fitstop
understanding the model better and that the HR Dept is becoming a more trusted brand in the market,” Pia told Inside Franchise Business. There are currently five franchises in Western Australia, four in NSW and one in Victoria who have driven their businesses to new heights, she reported. The most standout performance is a revenue increase of more than 300 per cent for the top performing franchisee. Average franchisee business growth lifted by 112 per cent. n
Donut King launches mobile van
Wallabies star Dane Haylett-Petty is the latest sporting heavyweight to sign up to a Fitstop franchise. The Australian rugby union fullback has joined with high school friends, teammate and now business partner Justin Turner plan to launch Perth’s second Fitstop, in Jolimont, before the end of the year.
Aussie sweet treat favourite Donut King reveals its latest innovation – donuts on wheels. Buying a mobile franchise will cost $139,000 + GST and there’s a launch bonus of $2000 worth of coffee beans. The goal is to have 30 on the road within 12 months.
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INSIGHTS
Eco warriors Which businesses are making a difference on sustainability issues?
R
etailers need to have an environmental plan if they hope to attract young Aussie consumers. That’s according to a report from Mastercard mid-2021, which revealed a growing trend toward eco-conscious spending and consumption. Reducing carbon footprint is now more important for 57 per cent of Australians surveyed, with 61 per cent believing companies need to adopt more sustainable and eco-friendly practices. According to Mastercard, the research is a nudge to organisations to implement sustainability initiatives because customers will shop with this in mind. Australasian division president, Richard Wormald, said, “The research suggests that consumers are increasingly expecting organisations to promote sustainable initiatives. Australian businesses must take action to reflect these expectations if they hope to continue to engage with these consumers. “The reality is that nearly one third (26 per cent) of young Australians plan to stop buying products from retailers that fail to step up and take sustainability actions.” So is a sustainability plan an integral part of the franchise business you are considering? If you’re not quizzing franchisors on this yet, add it to your list of essential questions to ask in your due diligence process, as it’s going to become increasingly important to consumers.
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FOOD FOCUS On the food front, McDonald’s unveiled its sustainability flagship store in Victoria at the beginning of 2021 – a store that operates entirely on renewable energy generated on-site. There are myriad innovations included in this, the 1000th Aussie Macca’s outlet, as the fast food chain looks to extend sustainability improvements in its new-build restaurants. The South Melton outlet operates purely on renewable energy generated on-site using a solar system. A list of 25 measures to be introduced include using recycled materials in furniture and in the play areas, the recycling of Happy Meal toys, and initiating a front-of-house recycling system that will turn waste into packaging materials. The sustainability initiatives aren’t all about recycling, though. Green-minded customers will be able to charge electric vehicles at the store, too. The business will also buy carbon credits to offset deliveries made via Uber Eats and DoorDash. Diana Grosmann, the national director of development at McDonald’s Australia, said, “Over the coming three years we plan to invest more than $500 million to open over 80 new restaurants across Australia, incorporating a range of core sustainability elements from restaurant 1000, including PlayPlaces made with recycled content and energy efficient equipment, as well as the use of 100 per cent renewable energy at some restaurants.” Domino’s has ended its reliance on single-use plastic straws and spoons in more than 710 stores across the country. The pizza chain estimates the change to biodegradable straws and wooden spoons will remove 2 metric tonnes or up to 2.85 million pieces of plastic from circulation each year. In an industry first, Domino’s is also trialling a recyclable “lineless box”, using cutting edge technology to apply an approved food grade lining that will
eliminate secondary plastic packaging from the supply chain. The new concept is expected to boost franchisees’ business with reduced wastage and improved food preparation times in stores. Nick Knight, who at the time of the sustainable initiative launches was Domino’s ANZ CEO, said Domino’s is proud to be doing its part to help ease plastic pollution across the country. “As Australia’s largest pizza company, we know we have the responsibility and opportunity to make a significant change and are proud to be taking positive steps forward by reducing plastic consumption, and our environmental footprint. “By removing single-use plastic straws and cutlery like spoons from Domino’s stores, we will expel more than ~2 metric tonnes of plastic from our system. “Recycling is also a great way to help cut down on the increasingly growing landfill problem, which is why we’re proud to use recycled materials in our sundae packaging and our thick shake cups are PET.” The brand’s use of electric delivery bicycles since 2015 has reduced its carbon footprint; the goal is to achieve 2 million e-bike deliveries in Australia each year. Convenience chain 7-Eleven and cafe chain Muffin Break have both been adopting sustainability practices in a variety of ways for a number of years, including recycling coffee cups. 7-Eleven Australia has helped save more than 20 million takeaway cups from landfill, and signed up 100 schools to its recycling program. The convenience chain’s coffee cup rescue initiative has reached a milestone in its three-year partnership with Simply Cups, a program that helps separate the cups from other waste streams and, using innovative new technologies, transforms them into items of higher value.
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INSIGHTS
7-Eleven became the pioneer partner of Simply Cups, an initiative of Closed Loop, in 2018. Each year the chain sells more than 80 million cups. Angus McKay, 7-Eleven Australia CEO and managing director, said, “Twenty million cups recycled is a great number to reach, but we want to increase the rate of recycling. We have more than 660 cup recycling units installed in our stores, and there’s hundreds of other recycling stations we’ve supported being installed in schools and other locations,” In late 2020, a new 7-Eleven #CupRescue Schools Program was launched with the goal of empowering young people to champion reducing single-use cups in landfill in their local communities, and there are already 100 schools participating. “We’ll provide participating schools with free cup collection units to enable students and staff to collect cups at their school. All the school needs to do is collect cups and drop them off at their partnering 7-Eleven store. “I’d love to get cup recycling at every high school in Australia with a local 7-Eleven,” said McKay.
ECO-FRIENDLY TARGETS ON THE MOVE Parcel delivery is big business these days, reflecting the growth of online shopping. But as deliveries increase, so do carbon emissions. Well, one franchise, CouriersPlease, is taking steps to fix that with an ambitious environmental target – to be carbon neutral by 2025. The action will save the equivalent of 1546 tonnes of coal, 1.7 million litres of petrol and slice nearly 14 million kilometres off the road – which is 540 laps around the Australian coastline. The franchise is cutting back its carbon emissions across waste, energy use, staff travel and flights. It offsets 10 per cent of emissions related to last-mile deliveries performed by their franchisees, which is in addition to offsetting its operational emissions. Paul Roper, chief commercial officer at CP, said a delivery app ensures franchisees drive to an optimised pickup and delivery route. “Over time, their vehicles will
also adopt new technologies and emissionsavings tools to minimise emissions further,” he said. Roper said the business is adopting green procurement. This process shifts the purchasing decisions away from cost and on to the complete life cycle of goods and services. That means reduced pollution and waste, and better use of natural resources, he said. Roper points to the importance of sustainability in today’s marketplace. “Online retailers are becoming conscious of the need to work with eco-friendly shipping and fulfilment partners who share the same values,” he said. JAX Tyres & Auto has opened the doors to its first retail store in South Australia and the first to be powered by solar panels. The eco-friendly outlet is company owned and part of the company’s expansion plan to add at least eight new locations to take the total retail footprint to nearly 100. The store has a commitment towards sustainable business practices and will be incorporating other environmentally conscious business programs and retail services. Customers with electric vehicles can use a free electric charging station. The store team will also be involved in the company-wide initiative to phase out print invoices and participate in JAX Tyres &
Auto’s national tyre recycling program via Tyrecycle. Steve Grossrieder, JAX Tyres & Auto CEO and MD, said, “From high-quality tyre retailing, holistic vehicle maintenance solutions, to electric vehicle services and more, we are here to help drivers head out on South Australian roads with safety and surety. “Keeping customers at the heart of everything we do at JAX Tyres & Auto is absolutely key for us, so when we saw that there was a strong and growing community of South Australians who were looking for a local bricks and mortar store, building our presence in this state to meet consumer demand became a major strategic focus for us,” he said. JAX has been trading since 1949 and now has more than 87 franchised stores nationally and a growing e-commerce platform to deliver full automotive mechanical servicing and specialised sales of tyres, wheels, brakes, batteries and suspension. The decision to launch the new store was driven by the state’s leading population growth and strong interest in the company’s products and services. The company saw an increase of 87 per cent in website traffic from the region in Q1 2021, compared to the same period in 2020. This figure was more than double the company’s national website traffic growth, which had increased by 42 per cent in the same timeframe. n
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THE LIST
Green Fingers 11 brands pumping plant power.
P
lant-based foods are part of today’s dining scene and analyst firm Euromonitor International is expecting this sector to be worth $6 billion globally within 10 years.
Vegetarian, vegan, flexitarian, pescatarian, meat-reducer – whatever the dietary label people identify with, more Aussies are opting for less or no meat on the plate, and franchise chains are switching it up to cater for the new breed of diners. A more conscious consumption shows itself in the variety of fast food options available now in every major brand – we’ve listed a few here. But there’s a new wave of planet-friendly businesses that are banking everything on the growing plant-based market. Some franchisors are also forging their brands on an ethical platform that extends beyond ingredients to packaging, sourcing, and planet-saving fundraising initiatives.
All or nothing 1. DELICIA
2. LORD OF THE FRIES
3. RED SPARROW PIZZA
“Plant based living is our specialty” boasts the Delicia website, and this Adelaideborn business takes an ethical stance with its motto “planet over profit, people over numbers”. This translates not just in its low wastage approach to ingredients and its focus on ingredients sourced from small local suppliers, but the use of recycled materials in store fitouts. Franchisees can operate a bricks and mortar store, the mobile Delicia to You caravan option or an even more compact business – the Delicia Espresso mobile business model which operates from a trailer. Delicia serves up superfoods in a variety of menu dishes including acai bowls, savoury veggie dishes, smoothies and raw treats.
The original vegan icon, which started life as a food truck, veered into franchising with bricks and mortar stores, then embraced its on-the-road spirit by reintroducing trucks as a franchise option. Famous for its crunchy chips served in a cone, the Melbourne-born fast food brand now spans the country with 20 outlets and an expanding menu that stays true to its vegan roots.
Red Sparrow Pizza is the latest brand to launch into the crowded pizza franchise marketplace. Founders Michael Craig and Shelley Scott opened Red Sparrow Pizza’s first outlet in 2017 in Collingwood, Melbourne, and have since added a Chapel Street store and a food truck. The couple pride themselves on the vegan menu and the brand’s authentic Neapolitan approach using traditional techniques for making pizza dough and tomato sauce, and baking the pizzas in Italian wood-fired ovens. Read more in our pizza feature on page 41
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4. SOUL BURGER
5. THE SOURCE BULK FOODS
Sydney’s young plant-based burger chain Soul Burger goes all out to reinterpret favourite burger combos from the classic burger courtesy of Beyond Meat to the cheese-topped patty, Southern Fried Chicken burger or BBQ Pulled Pork special. In addition to the dozen burger choices, there is a trio of fries – herbed, tangy and sweet potato – snags and snacks, smoothies and churros. With three stores as its foundation Soul Burger has started to franchise.
With a mission to support local farmers and provide food at a good price, aiming for zero waste, and providing options for customers with food intolerances, The Source stocks a range of grocery items from honey and peanut butter (you can pour or crush your own) to pantry staples such as flour, rice, pasta and oats, sweet treats, and household products from shampoo to laundry detergent. It started as a veggie store in Byron Bay. Now this packagingfree wholefoods retailer has 66 outlets across Australia, Ireland, New Zealand, Singapore and the UK.
A flexi approach 6. GUZMAN Y GOMEZ
GYG introduced for spring a new ingredient it’s been trialling for three years – shredded shiitake mushroom. This is the first plant-based filling for the Mexican chain in three years: a plant-based protein filling without artificial flavours, added preservatives, unacceptable additives or added colours. In collaboration with Aussie real food innovators, Fable Food Co, GYG has developed this protein with distinctive authentic Mexican flavours including smoked paprika, garlic and onion.
7. FERGUSON PLARRE BAKEHOUSES
At heritage family-owned firm Ferguson Plarre Bakehouses, even its famous meat pasty, the Tiddly Oggie, has gone green – well, there’s a veggie option now available. And it’s just one of several meat-free pastry delights. The plant-based Aussie Pie centres on chickpeas, with wheat, garlic, onion, and herbs and spices. In the sausage roll it’s the combination of shiitake mushrooms, carrots, potatoes, onions, chickpeas, garlic, onions and a secret blend of herbs and spices that hits the mark.
8. HUNGRY JACKS The home of the Whopper is now also a spot to veg out on plant-based fast food that uses vegan cheese and mayo. Customers can start the day with vegan brekkie muffins – even the hash browns are vegan – or pile it up with a Vegan Whopper cheese burger. The flame-grilled vegan patties that make up the Rebel Whopper range are plant-based but not strictly vegetarian because they are cooked on the same grill as beef patties.
9. MCDONALD’S The McVeggie burger is an entirely plant-based offering, McDonald’s first vegetable-based burger made from Aussiegrown veggies including potatoes, peas, corn, carrot and onion. However, like the Rebel Whopper, it shares cooking facilities with meat burgers so won’t meet strict veggie standards.
10. DOMINO’S
Domino’s Pizza Enterprises launched plant-based pizzas using its own soy protein-based meat alternatives free from artificial preservatives, flavours and colours and reportedly lower in saturated fat and higher in protein than beef. Think plant-based Beef & Onion, a spicy Vegetarian or Vegan Fire Breather, Vegan Godfather and Vegetarian Plant-based Godfather, as well as Cheesy Garlic bread.
7-Eleven Convenience chain 7-Eleven has embraced the vegan trend, loading up its shelves with plant-based snacks and meat-free alternatives to good old Aussie favourites. The 7-Eleven No Chicken and Lettuce Sandwich, No Egg and Lettuce Sandwich, No Beef Pie and No Sausage Roll are available nationally in all stores. Other menu options include a vegan-friendly falafel wrap and in selected stores a Japanese rice ball, the Teriyaki Mushroom Onigiri. n NOV/JAN 2021-2022 | 15 | WWW.FRANCHISEBUSINESS.COM.AU
COVER STORY
Franchising with the lot Nicole Carmichael’s energy and hard work has taken her from the cosmetics world to a multi-unit McDonald’s franchise, and she’s ambitious for more.
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icole Carmichael is in her franchise for the long term. “I want to have 15 stores,” she says. This city girl was born and bred in Sydney and that’s where the Dubbo resident wants to get back to at some point. Her mini empire of four McDonald’s drive-thru stores is a stepping stone to a Sydney return Sydney–Cooma–Dubbo. That’s been the journey for Nicole, who moved from running the duty-free business for a French cosmetics firm (working with Christian Dior, Clinique, Armani) to signing up to a Gloria Jean’s cafe, becoming a multi-unit operator in the coffee chain, and then investing in a McDonald’s franchise. Nicole explains how the first shift away from corporate life took place. “French companies like you to move on from your role after two years, and as I was already senior in Australia, that meant a move overseas. I was newly married and didn’t want to relocate,” she says of the transition from cosmetics to cafes. So she took a sidestep, fulfilling her ambition of owning a coffee shop. “I regularly met up with a girlfriend for a coffee at Gloria Jean’s, and I always wanted to run a coffee shop.” She went through the training and opened up her first store when she was six months pregnant.
“Juggling any work commitment with a new baby is difficult, especially when it’s your own business because work never shuts off when you go home. But for me, I wouldn’t know life without having a million things to juggle, and the constant go go go is what I thrive on,” she admits. So within nine months and with a young baby, Nicole had opened up a second store. By the time she was ready to move on, six years later, she had accumulated six stores. “I loved Gloria Jean’s. I moved from the corporate to the franchise world and it taught me how to own and operate a business. I was training a lot of incoming franchisees, which was a privilege, but I wanted more personal development.” There was also a financial reckoning in the decision to move on. Nicole believed that even with six Gloria Jean’s cafes, she would make a bigger profit with a single McDonald’s outlet. “I came from a marketing background, so I thought about who is the biggest marketer, and it is McDonald’s. But I thought as I was a competitor with coffee, they would not be interested.” It turned out McDonald’s believed her coffee and business skills would be an asset to the fast food chain and she began the long process to become a licensee. In all it took about 12 months, she says. The process included interviews with
licensees, a three-day on-the-job evaluation, and an appearance in front of the review board of department heads and senior leadership to confirm her suitability as a licensee candidate. All this happens before being accepted on to a training program. Before Nicole got to the review board she was required to sell her Gloria Jean’s cafes as these were viewed as competitive businesses. She also sold her house to help finance the new business. And she knew she would be relocating, as the McDonald’s system requires new franchisees to start out in a regional site. “I was lucky to get my first store in 2014, I got Cooma. I was fortunate but it was a huge challenge because it is a seasonal store, most of the business is in the ski season with people travelling to the snowfields.” A mediocre revenue through the year rises to triple the volume in the ski season. What it taught Nicole is the importance of a roster, and learning to operate on a tight budget for nine months of the year. The store also had untapped potential. It was an opportunity to develop something she knew well – the coffee business. A target was set for what the business should be achieving by 2019; Nicole had reached that goal by 2016. How did she do it?
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REGIONAL CHALLENGES Sometimes it is very hard to recruit and retain staff. You can identify crew talent and develop it, but staff won’t stay in a country town.
WHAT WAS YOUR INITIAL GOAL? “Not to work for a salary. Quite often business owners are just working for a wage. I wanted to grow and have multiple stores.”
WHAT’S AN IDEAL NUMBER OF STORES?
4 LESSONS LEARNED
“I always say the magic number is three. One is harder than four, and the cash flow is better at three.”
ON BEING A WORKING MUM “I believe it’s very important for your children to see a strong work ethic in their mum, so they learn the same should be applied in their work life and understand that you need to work hard for your money.”
1. “Gloria Jean’s taught me how to balance money and stock. When I got to Cooma I focused on coffee but then I had to say it’s only 20 per cent of my business. I had to step back and work on 80 per cent of the business. 2. “Having a business with a cafe has been invaluable. Now I run it as a second business, the crew is run as a separate team. Coffee customers are very fussy – you can pour a bad coffee and they won’t come back. 3. “It’s important to understand the different elements of business.” 4. “We have to do our own delivery, we don’t have third-party firms out here. So I had to establish delivery and run it as a separate business. I have to work out how to get to the customer in six minutes. It was test and trial. In the first lockdown we were shut down for two months, down about 50 per cent. We had the option of delivery and I decided to wing it to see how it goes. Now I’m the busiest for self-delivery.”
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COVER STORY
aren’t keen on retiring, they are doing too well, Nicole says. So for now the focus is on developing the existing portfolio of restaurants. “I’m growing so much year on year. My goal is to continue to grow equity in my business. I’d love to have 15 stores, to be a big player, so I need to start working on it now. “I pride myself on developing people. Some of my senior managers want to be licensees and I can challenge them, grow them to be a licensee. “You don’t realise you have to work really hard and think outside the box. I need a team of people to work with me.” Nicole has a management team and two supervisors working in the business, as she works on the business. But she admits to always getting hands-on when she visits a store; and the Covid pandemic’s spread to regional NSW presented another challenge for the business owner. “I had to go back to basics. At Dubbo I’ve just lost 50 per cent of my crew who are isolating for 14 days, so I’m back as crew,” Nicole reveals. “You have it in your blood, you still want to do it,” she says. She also takes a leadership role within the McDonald’s network, on the board for Ronald McDonald House Orange, and heading up NSW/ACT McDonald’s leadership women’s group.
THE MCDONALD’S FAMILY “I went back to basics. I worked alongside managers to prove they could build sales, improve customer service.” She acknowledges, too, the importance of community involvement in business building. Nicole’s stellar performance at Cooma impressed McDonald’s, and she was able to consider selling up and buying another store. “With a single store, I still couldn’t afford Sydney. So I bought three Dubbo stores.” In fact, Nicole negotiated for three drive-thrus and then had the opportunity to build a brand new site so signed up for the fourth. Three of the restaurants operate 24 hours. “It is very regional so I thought it would be a massive challenge, but it’s been the best thing.” Regional challenges include not having technicians available to fix problems, and staff recruitment. The move had proved a challenge for
her family, too. Nicole’s son, who was just months old when she bought her second Gloria Jean’s store, was sad to leave friends to move to Cooma. It was even harder when he was in going into high school and had to shift home again, to Dubbo. But he’s found his feet and developed good friends. “I’ve been really lucky my family has been so supportive. My husband is a country boy so he’s helped me settle in,” says Nicole. Her husband has remained outside the business (except when his building skills are required for maintenance jobs) so there’s been a second income. The family has moved from rental accommodation to their own home – and managed to invest in a Sydney property. “McDonald’s has blown my socks off. I joined because it works, McDonald’s is so supportive. I was quite a young franchisee and I’ve been successful. I don’t plan on going anywhere.” Except Sydney of course, the ultimate goal, and that is dependent on properties becoming available. Existing franchisees
“McDonald’s are fantastic for support. There is such a huge level of talent in the business. We are all one big family. Everybody’s actions affect the brand. “If you have the passion for the brand, energy, drive and are definitely prepared to put in hard work, I’d recommend it. “I was nervous about the McDonald’s way. Most licensees work their way up from crew, there are only a few of us from outside. I didn’t know anything about McDonald’s. But one licensee said in training, ‘Stop worrying about the processes, you can learn that, you have the business experience.’ He had the McDonald’s experience but not the business side. “It takes many, many years of hard work to see the light at the end of the tunnel. But there are a lot of perks. We get to travel to conferences, to network. Most licensees are friends as well, it’s very inclusive. “There’s nothing I’d change about my franchising experience. I’ve been thrown in the deep end and learned the hard way, and it’s made me the person I am now.” n
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LEADERSHIP
Is this the next F45? Celebrity trainer and F45 co-founder Luke Istomin turned Hugh Jackman into Wolverine, has worked with Nicole Kidman, and counts singer Jessica Mauboy and actor Susie Porter as clients, so you’d expect him to know a thing or two about fitness.
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ot only that, he understands how to create a systemised franchise model. So it’s exciting that Luke has combined all his experience into a brand new concept, Reunion, and is planning a network of 150 studios across Australia. NOV/JAN 2021-2022 | 20 | WWW.FRANCHISEBUSINESS.COM.AU
So what is Reunion and why is it different? The key to the business is creating an all-round fitness program that focuses on strength and conditioning broken up with high intensity routines delivered within a boutique, community-centred 50-minute session that includes 10-minute warm-ups. “Our training principles are for the long term,” Luke tells Inside Franchise Business. The focus is on a personalised program for each client. Sessions run five days a week, with a different workout focus each day and alternating between strength and conditioning. It’s important for clients to have fluctuations in their training routine to achieve sustainable long-term results, he says. Reunion trains in teams of three, called a pod. Clients are buddied-up with other members at a similar fitness standard and body size, with beginners grouped at one end and advanced clients at the other end of the room. “It takes the intimidation factor out,” says Luke. Reunion incorporates something from all elements of the fitness market, he says. There’s plenty of equipment as there would be at a big box gym but it is a boutique size, session-driven studio. There’s a sense of community with team challenges and members introduced to each other by name. And in a business where many gym members move from “one shiny thing to another” he’s pleased Reunion has a strong rate of member retention. Right now there are three company-owned studios in Sydney – although they are operating digitally through lockdown – and membership has grown by 65 NOV/JAN 2021-2022 | 21 | WWW.FRANCHISEBUSINESS.COM.AU
people during the last few weeks despite the stay-at-home orders in Greater Sydney. “Our members are happy to stay, happy with the training, happy with their weight. Across our three studios, members look and feel good, they are educated to know how to approach dieting etc.” The first studio opened in 2018 and has retained about 60 per cent of its membership. “I’m really proud of that. And for franchisees, it’s more comforting to know the customer base is wider. Wellness is a lifelong commitment, and we want to make this accessible to anyone.” Luke and CEO Simon Philis are determined the model delivers on the goal of being franchisee-centric. For instance, rather than a fixed upfront franchise fee, the pair have devised a sliding scale of fees that relate to sites, which are tiered according to a number of factors. In that way a regional town studio catering for a smaller, lower income population base is not paying the same fee as a city studio with twice the footprint, more than twice the client base and a higher socio-economic clientele. There are also deferred payments for equipment leasing, which gives new franchisees 12 months grace before they start repaying the loan. “The more we can help a franchisee be successful, the more sites they’ll buy,” says Luke. “We’ll take a short-term hit initially and make sure they are happy. We don’t want brand saturation or cannibalisation in an area.” And that’s why he has set the target of 150 studios for the Australian market. n
LEADERSHIP
Fitness with flex Did you know 80 per cent of Aussies don’t use a gym? And that’s why two big names in fitness are targeting this market with their brand new concepts.
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he latest offerings are focusing on wellness, aiming to attract the reluctant gym goer. Fernwood Fitness is unveiling Fernwood Fusion, and former Fitness First boss Tony De Leede is launching Club W.
This wellness concept has a clear goal: to attract the 80 per cent of Aussies who don’t go to the gym, with senior citizens, particularly women, the target market for membership. Tony De Leede tells Inside Franchise Business, “The people we will attract have never been to a class and will embrace this; all of our instructors are over 40s, it will be a place to meet friends. This is wellness for everybody, every day.” The Club W idea has been trialled as a multi-activity wellness centre in Caringbah, in Sydney. Club W combines three concepts in the one venue: Wellness Lounge, Wellness Collective and Wellness Coworking. The fitness element is focused on two major activity streams, Move 123 and Mind 123. The bite-sized classes are designed to appeal to reluctant exercisers who are daunted by the idea of a long gym session. The 123 stands for 10, 20 and 30 minute sessions and activities include dance, cardio, yoga, Pilates, breathing, meditation, stretching and chi. “It’s all about small bites,” says Tony. “We feel for a comfortable environment the 50+ age group is the target, with movement and activity delivered in immersive rooms on screens – a yin and yang
room (for breathing, meditation, stretching and chi) and a cardio space, with all sessions pre-recorded.” Digital content can also be accessed by members in their own time, and Tony suggests Club W could stream live classes in the future. The introduction of quiet rooms for one or two people is partially driven by Covid, he adds. “You can pick your content, pick your time, pick your LED lights, pick your scent (we have a symphony of scents) and curate your own personal private workout. It’s a new element to what we’re doing.” The concept also includes wellness pods featuring equipment such as massage recovery chairs, infrared meditation and salt bricks. Tony compares it to pricier hands-on spa and wellness treatments. “Club W is tech-enhanced wellness, touchless treatments which provide a different experience, and it’s one third of the price,” he says. Suburban co-working is already becoming the norm, he points out, and the wellness co-working space seats about 35 people at individual desks; there are two-people offices, and hot or flexi desks – all available on a co-working wellness membership. Tony is hoping to reassign the all-Aussie
idea of a smoko with what he calls a wello – a wellness break in the wellness lounge, which includes a cafe. “The concept of a break is more relevant than ever,” he says. The franchise model suits sites of about 500 square metres and elements can be bolted on to the basic model in larger sites. Franchisees can expect to invest at least $400,000 in a Club W business.
WHO IS TONY DE LEEDE? Tony has plenty of fitness and wellness business experience. In addition to leading Fitness First Australia for eight years from 2000, he launched Gwinganna, the luxury lifestyle retreat near the Gold Coast, a surf retreat, yoga and wellness resort Hotel Komune, the Fit n Fast gyms and the YogaBar.
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FERNWOOD FUSION
The concept continues the women-only focus of its iconic Aussie gym chain parent but takes a more boutique approach. Fusion offers a wellness program of classes in yoga, mat Pilates, reformer Pilates, meditation, barre and fusion. Caitlin Jury, general manager of operations and marketing at Fernwood, tells Inside Franchise Business, “There’s always a place for a big box gym and we’ve started to introduce wellness, and 47 out of 74 clubs do Pilates and have some form of wellness. But Fusion is a niche market.” While there are other gyms taking on wellness concepts they are still targeting a younger market, she says. “They are showcasing wellness as a high intensity activity, attracting another gym goer. We want to attract peoplewho would never set foot in the big box gym.” Caitlin points to the recuperative benefits of wellness classes, with doctors recommending reformer Pilates to mums returning after childbirth and senior citizens suffering aches and pains. The new brand is ideal for the vast majority (80 per cent) of Aussie women who are “deconditioned” she says. In addition to the relaxed and meditative classes there will be some fusion sessions which introduce cardio workouts, ideal for members to step into as their fitness levels progress. Fusion, as the name suggests, combines the disciplines in a circuit program; this is delivered on a video screen with practitioners on hand to give personal attention.
THE FUTURE OF WELLNESS?
That personalised, boutique approach is key to the new concept. While Fernwood members would be familiar with a lounge area for members to relax and enjoy a coffee, the look and feel of the new model is a step away from a gym, with a signature aroma and soft music turning the space into a sanctuary. These clubs will operate with a more intimate ambience and between 150 and 300 members. The first of 10 units to open by the end of 2022 will open its doors this year in the Victorian suburb of Richmond, with a much smaller footprint than the big box style Fernwood Fitness gyms, at just 200–300 square metres. But “the sky’s the limit” for long-term expansion, reveals Caitlin. The appeal for franchisees – apart from the level of support that Fernwood delivers – is the affordability. A typical Fusion investment would be about $200,000; the smaller footprint site is cheaper to maintain, and with a different staffing structure there are fewer labour costs than with a traditional Fernwood Fitness gym. Fusion franchisees can expect a streamlined model, thanks to the pandemic. The business is embracing the efficiencies introduced during lockdowns, and an
online membership model has been developed so franchisees can still get revenue in any future shut down situations. The Fusion model is open to new franchisees and Fernwood operators alike. There’s room for both, says Caitlin, with sites already spaced out up to 15 kilometres apart, and in many cases a Fusion location can fit into a Fernwood territory. “We’ve already got existing franchisees wanting a Fusion,” she says.
WHO’S BEHIND FERNWOOD FUSION? Parent company Fernwood Fitness was founded by Diana Williams in 1989 as a women-only gym. Today the female focus continues and the nearly 70 health and fitness clubs across the country have more than 70,000 members.
Club W‘s Tony De Leede predicts a mix of corporate, shopping centre and standalone sites. “In the corporate world we have already installed a wellness lounge inside Stockland’s headquarters. It has two immersive rooms and five pods, and everyone in the company has access to the digital platform. “Westfield is looking ahead to what our shopping centre is going to look like in five years.” Lifestyle, experience and wellness precincts are the future, he suggests. “I have a vision of a 4000-metre huge Club W incorporating stretching, nail salon, hair salon and a fitness component.” NOV/JAN 2021-2022 | 23 | WWW.FRANCHISEBUSINESS.COM.AU
LEADERSHIP
MEGA ANNIVERSARY Fixing leaky showers and balconies has been bread and butter for Megasealed for 25 years.
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hirty-three franchises undertake more than 18,000 jobs each year fixing Aussies’ leaking showers and balconies – and they can boast a 98 per cent satisfaction rate amongst both household and commercial customers. Franchises operate territories across NSW, Queensland, South Australia, Victoria and Western Australia under the Megasealed banner. Yet the business has only been franchising for a few years, founder Jacques Courtin tells Inside Franchise Business. “Franchising is very important. I used to have about 185 people working for me and five call centres. I wanted to slow down. I completed a franchise diploma and decided to franchise five years ago: 80 per cent of the business was sold to employees. They knew the clientele, how to run the business, so for me it was a low-risk option.” Jacques already had the formula and the business became stronger and bigger with franchise expansion. Like many successful business ideas, Megasealed came about because Jacques could see a real need for a particular service – and he provided it. “As a builder, I was looking at how could we repair leaking showers, building and balcony renovations we were demolishing. Much of the work could have been repaired without removing tiles,” Jacques reveals. “Most of the time we were fixing bathrooms only one year old.” The issue was always the grout, silicone and poor sealants that had been used. So he developed an epoxy product that doesn’t require any downtime so the shower could be used the next day. “Clients loved it. Property management
firms and builders were very happy,” he says. He started out marketing to his target customer: builders, property management, and building inspectors. “Marketing is the fuel of the engine today and it has been the most important part of growing the brand,” he says. The job was quoted over the phone and a technician would deliver the service.
“It worked very well in Sydney, so I decided to go to Melbourne and build that up; I put management in Sydney. Then I developed Queensland, and then Perth.” As the business footprint has grown, its commitment to product and service innovation has remained steady. There are now comprehensive solutions for tile re-grouting, waterproofing and anti-slip safety.
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Jacques points out this is the only business in the industry to be certified as a Quality Endorsed Company by SAI Global. Looking back on the 25 years, he admits happy clients have been a source of satisfaction. “I’ve enjoyed seeing smiles on the faces of clients. Some say, ‘You haven’t done anything’ and I say, ‘You’re not supposed to see anything!’”
Of course there have been challenges, not least Covid, when virtual inspections and quoting were introduced for client and staff safety. Megasealed cancelled franchisee fees during lockdowns and then saw the hard work of all franchisees boost business by 20 per cent once restrictions were lifted. “This is like a big family. We offer franchisees a unique opportunity to
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draw on our product knowledge, training resources and extensive sales and marketing support, which in combination with their low-cost investment, has allowed them to build their own dream businesses,” he says. “But we still need more franchisees around Australia. Right now, the sky’s the limit!” n
LEADERSHIP
Hot chicken gets a roasting Have you heard of Goobne? The newest player in the chicken market is gearing up for growth.
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rom the people who brought us the popular bubble tea brand Chatime comes the latest in takeaway chicken. The story began back in 2005 in South Korea and today Goobne has more than 1000 outlets in its home country, with expansion into Hong Kong, China, Macau, Japan, Indonesia, Malaysia and Vietnam. Now the brand has a foothold in Australia and is ready to ramp up franchising. Find out more about what’s in store in this Q&A. Q: TELL US ABOUT THE BRAND AND THE TARGET CUSTOMER A: Goobne is Korea’s number one ovenroasted chicken brand, offering a healthier alternative to the popular Korean fried chicken, so we believe that our product really appeals to customers who are looking to find healthier alternatives to traditional fried chicken. We can leverage the Korean heritage and K-pop to appeal to younger customers, but expanding to appeal to all Australians’ love of chicken will be the key to success. Q: IN THE NEXT 12 MONTHS, HOW MANY STORES WILL YOU OPEN AND WHERE?
A: We are excited to announce Goobne opened in September next to East Village in Zetland. The goal over the next 12 months is to open another six new hot quick service restaurant locations across Sydney, aiming to hit locations such as Epping, Chatswood and Strathfield. Sadly we are seeing an increase in restaurant vacancies due to Covid, however this does provide us with some great opportunities to get established. Chicken is a great product for takeaway and delivery, as demonstrated by some larger and more established brands, enabling us to often be more successful than a restaurant relying strongly on dine-in trade. Q: WILL THESE STORES BE FRANCHISED? A: While Goobne has an established operating system it was important for us to operate the first restaurant to understand the model and customise it for Australia. The new restaurant in Zetland takes all of these learnings and we are now looking to expand with franchise partners into the next group of restaurants. We already have strong interest from our network of Chatime partners who are looking to Goobne as a way to expand and grow their skill set.
Q: HOW WILL YOU EXPAND BEYOND SYDNEY? A: We can’t wait to be able to introduce Goobne to the rest of Australia – once we’ve established our presence across NSW, we aim to open franchises in other states. Q: WHAT’S THE SIZE OF A STORE? A: The ideal Goobne restaurant is 100–130 square metres with a focus on high delivery/takeaway opportunities similar to Goobne’s restaurants in Korea. Q: WHAT’S THE STARTING INVESTMENT LEVEL? A: The starting investment to franchise with Goobne is between $450,000 and $550,000. We have what we call turnkey delivery, meaning we take care of handling the lease, training and even have an in-house marketing team too. We provide full support throughout your journey with us at Goobne. n
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LEADERSHIP
Mister
FIXIT
What makes Mister Minit multi-unit franchisee Steve Whittard a standout business owner?
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his year Steve was named the Mister Minit Franchisee of the Year, earning him the praise of CEO Mark Rusbatch.
“This award is a signal to the Mister Minit Network on what an outstanding franchisee looks like. They are someone who sets the standard and will be sought after for business and management advice,” Mark says. The Franchisee of the Year is nominated through rigorous criteria, including overall contribution to the brand and business, adding value to others and the system, being proactively involved in the community, providing exceptional customer service as measured through internal programs, leadership development, and delivering outstanding trading results which are measured by customer growth and sales growth. Steve puts his success down to his team and the people he works with. “Ultimately it’s about people. It’s a service business. Recruit the right people and invest back in the business. Hire for the culture of the business. Even if the applicants are fully qualified, if they aren’t a good fit, don’t hire them,” he says. “Apart from working closely on a daily basis, our team shares a lot of leisure time together outside of work, so we all need to get along.” Today Steve employs 18 people and owns seven stores on the Gold Coast and a mobile service. He started out as a franchisee with four outlets. But he was no stranger to the business, thanks to a 33-year career with the service network. Steve’s first job at the company was learning how to do shoe repairs and the basics of the business. He then held a number of supervisory and management roles before becoming the company’s first franchise manager. In this position he set up the fundamentals of the Mister Minit franchise system, and then transitioned into a national property management role, working on the leasing and construction of new stores. Throughout this broad experience at Mister Minit he was impressed with how the franchisees embrace the business. “I noticed how happy they were,” says Steve. “I’d meet them at award nights and they were such a
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We have an incredible team of people working in the business who continually look at ways to further their skills and enhance the customer experience at the counter.
great group of people who are passionate about what they do. I thought to myself – I have to give this side of the business a shot!” So he shifted from Sydney to the Gold Coast and set up with his first franchised outlets. “My plan was to build a business. It was never my intention to work in a shop when there were others who were more suited to the role. “Before I started I wrote my business statement, which has been the driver for my business for the past five years. My purpose in owning a portfolio of shops is to build a team of highly motivated people with a winning mentality,” adds Steve. “We have an incredible team of people working in the business who continually look at ways to further their skills and enhance the customer experience at the counter. They live our trueline of ‘Real People Fixing Problems’ and I am extremely proud to be part of such a results-driven group with a customerfocused mentality,” says Steve. “The last 18 months have no doubt been challenging for everyone. As a team we made the decision to stay open and service the needs of our customers during the early Covid-19 shutdowns. In fact,
Mister Minit was one of the only specialty retailers that remained open in our precinct at Pacific Fair. The whole team felt it was important for us to be available for our customers.” He admits that running a successful business can appear daunting. “You have to know who your customer is, give them the best quality product or service at the right price to retain their loyalty, while recruiting, training and motivating your own team, keeping on top of expenses, complying with all the regulatory requirements, keeping up to date on government legislation and new developments in your industry segment, while watching your competitors and then finding time for your family and personal interests!” Steve points out. However, there’s a simple solution to this, he suggests. “While that can be very challenging, personally I find that if you keep it simple and just ask yourself – ‘If I was a customer or a team member, is that the way I would expect to be treated?’ Then everything else is just part of the business game and the rewards can be great,” explains Steve. Now running induction classes for other franchisees, Steve has a wealth of experience to share with businesses or
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those starting out. His number one piece of advice is to clearly articulate a goal and strategy you believe in. Are you looking to create wealth, or are you looking for a work–life balance? It is important to understand why you are getting into the business. Steve’s top business tips to get the best out of your team: • give them autonomy and let them make decisions • listen to your team and have open dialogues • be interested in them personally • be open and honest in your communication • be clear in your expectations – no surprises • be humble • put supporting structures in place to help your team. At Mister Minit success is easily defined, says Steve. It’s when a customer walks away from the counter with their problem solved. n
LEADERSHIP
Lifesize Plans has unveiled a unique franchise model, a tried-and-tested business that turns building plans into a full-scale walkthrough experience. By Sarah Stowe
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t’s exciting when a truly original idea takes off and some of the best ideas are a result of spotting a gap in the market through personal experience. Lifesize Plans all started when the founder’s encounter with council and building plans led him to ditch his own house-building project and invest the money into a unique business concept. Lifesize Plans does exactly what it says. It brings building projects to life by allowing clients to experience the dynamics of the floorspace before a brick is laid. A patented full-scale walkthrough technology projects architects’ or builders’ designs onto a warehouse floor. Lifesize Plans CEO James Hickey says, “It’s ideal for anybody who wants to visualise scale. We’ve got mobile furniture and walls, we help people visualise the space and the functionality. For most people they get the concept, but until it’s blown up they don’t understand the true functionality. “This is a gamechanger.”
It’s a massive step up from pegging out the footprint with string lines, and the technology is revolutionising the design and construction industries, helping architects, interior designers, builders and the real estate industry, he says. And while high-end custom builds are an obvious target the service can be used for modest house renovations, smaller kitchen renovations, second storey additions or a deck, landscaping, even design event management. Getting the scale right before the build starts is a crucial money-saver, says James. With his career pedigree, he is well placed to understand the dynamics at play. “I’ve lived my entire life in construction. I started as a carpenter, moved into management, and I’ve been a CEO and in change management,” he reveals. “This business gives me the ability to blend my love for tech and construction, it’s the ultimate candy store for me. It sings to my heart, the design aspect. “It means everyone gets the vision right.
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If you get that wrong, costs blow out.” The journey to franchising hasn’t been without its challenges. In 2018 the founders appeared on Shark Tank, seeking capital for expansion. “Everyone loved the concept but they didn’t have it quite right,” admits James, who joined the business a year ago to scale it up. Now the business has equity backing and has been reorganised and restructured, specialist DC Strategy Franchise Group has primed it for franchising. “Lifesize Plans is ready to expand into new markets and we believe that – with the help and vision of our investors and partners – our quality franchise business offer will attract huge potential and will succeed around the globe.” The business model employs a simplistic work flow and has low staffing requirements, with profits based on asset utilisation. Franchisees will operate using a dual model system, with designers showing off their designs to the customer, while the salesperson is out to attract more customers. It will cost $1 million+ to invest, as franchisees need sites of about 800 square metres to house a 650 square metre showroom floor, a store, and install the projectors. “The main cost is the set-up, there are low ongoing costs. This is a very sound business model,” says James. It’s territory-based and a full job management system will track leads and link to finance systems. “There is a huge amount of IP but it’s simplicity is its beauty,” says James. At the same time as the domestic market is being amped up, the Lifesize Plans Group is looking to fulfil its global ambitions. It is on the search for sophisticated business executives to take on international master franchises all around the world, including the US. n
LEADERSHIP
EXCITING
NEW OPPORTUNITIES! Arts and science are making their mark in franchising with the latest brands to offer Aussies the chance to be their own boss.
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eisure and learning go hand in hand with these franchises, which are bringing their own spark of individuality and inspiration to the marketplace.
PAINT PINOT
New Paint Pinot has unveiled its 3-in-1 business model that combines food, wine and painting to offer franchisees multiple revenue streams. Right now there are 31 territories in NSW available for new franchisees and there is a special $10,000 franchise fee incentive for the next six franchisees to sign up. The idea of a paint and drink night is a popular one right now, following on from success in the US. When artist Tina Hansen’s Canadianbased son told her about the concept she jumped at the opportunity to start her own business providing a premium experience and started out back in 2017 before deciding to franchise this year. The Paint Pinot concept includes a cafe and wine bar, so it’s a one-stop shop for customers. The fully licensed, fully catered art cafe model offers a range of food and drinks including cocktails and freshly baked pizza. Tina promises extensive training and online systems support for franchisees, with marketing on Facebook and Instagram to promote the brand. Franchisees can earn up to $2000 per event, she says, and typically a Paint Pinot venue runs between three and 10 events a week. Of course, like many leisure-based businesses Paint Pinot is popular after hours so franchisees need to be prepared to work evenings and weekends. While visual arts skills and experience are welcomed, franchisees don’t need to be artistic. Tina believes anyone with a passion for creativity and for being their own boss can succeed and local artists can be employed to teach the painting sessions. “Our events are filled with fun and laughter with our guests trying their hand at painting their masterpieces, with guidance from our artists of course,” says Tina. “We use artist-quality material with experienced artists to achieve that perfect painting. Our guests don’t need to bring a thing, just a little creative flair, and be prepared to have some fun.”
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STORMER MUSIC
Brothers and musicians Phil and Joel Stormer were just out of high school when they started providing music lessons from home 15 years ago. Now the brothers are ready to launch Stormer Music. Guitarist Phil and Joel, a drummer, began building up their Blue Mountains business in 2007 with new teachers, musicians and students. Phil says, “We exist to provide great music lessons with wonderful teachers for students of all ages, stages, abilities and walks of life in just about every instrument you can think of. With families, children and adults all welcome, our weekly lessons are completely personalised and taught within our students’ goals, values and experience.” DC Strategy, founded by Rod Young in 1983, is partnering with Stormer Music in launching its franchise model and helping to find the right candidates to grow the music school business in Australia. James Young, head of franchise sales and development at DC Strategy, believes that Stormer Music heralds a new wave of franchising. “We’re excited to expand Stormer Music’s presence across Australia and think it’s a perfect addition to the franchising market. This business model will allow franchisees to own an established and well-respected music business, while changing the lives of young students everywhere. “My kids are passionate about music and this concept is a game-changer for parents wanting to introduce music into their families.” Music learning options are varied: from music lessons, music therapy, in-school programs and unique student concerts, to workshops with guest artists, recording days for audio and radio, celebrity concerts, artist development programs, and band and ensemble training programs and student awards programs.
“We also launched Music Therapy, a research-based, NDIS-recognised practice which harnesses the power of music to help our clients achieve their goals and improve their health, function and wellbeing,” reveals Phil. “With a focus on neurodiversity, inclusion and accessibility, we work with specialist therapists for clients with ASD, ADHD, emotional regulation disorders and more.” Stormer Music has key partnerships
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with music brands, supplying equipment and venues for concerts, including wholesale rates on all music gear to use in the studio or on-sell. The team has also secured key partnerships with businesses like insurance brokers, fitouts and software. Franchisees will receive a modern, fully fitted music school ready to go, as well as ongoing training and support. Stores are already set up in Bankstown, Blaxland, Gregory Hills, Kogarah, Narwee, Parramatta and Penrith and further expansion is planned across NSW. The goal is to open more than 10 music schools across Australia within two years. The model has been stress tested, simplified and polished for over 10 years and even with lockdowns, the business can continue to operate, Phil points out. “After many sleepless nights, a complete overhaul of our timetable and brand-new tech we managed to get our program completely online just in time for the lockdowns. “Music is a great healer and our teachers are wonderful shining lights for young people who definitely need the pick-me-up right now,” he says.
LEADERSHIP
However, not every child is interested in sport and as an organisation we want to provide opportunities for children today, tomorrow and in the future.
ALLSTARS ACADEMY
Kids’ sports training franchise Sport Star Academy is branching out into new arenas with the launch of its Allstars Academy. The new business introduces five new non-sporting sectors that franchisees can add to increase revenue streams to their business: wellness, arts, gaming, education and STEM. Traditionally the Sport Star Academy has trained kids in popular sports including football, basketball, tennis, cricket and AFL. Marketing director Kelly Nikolakopoulos says, “Up until now, sport has been the foundation of our business. Under Sport Star Academy we have successfully built out multiple sports, expanded nationally through our franchise partners and offered Australian families opportunities for their child to participate in our programs whether it be football, footy or basketball. “However, not every child is interested in sport and as an organisation we want to provide opportunities for children today, tomorrow and in the future.” Kelly points out that gaming and e-sports deliver benefits for children. “It is more than just sitting on a couch
playing games, e-sports improve problem solving, spark creatively and have cognitive benefits,” she says. It is also a booming business sector set to become a $1.4 billion industry by 2024, she adds. The Allstars Academy business expansion will include the acquisition of existing businesses and will also allow
existing franchisees to provide a holistic offering. “Existing SSA franchise partners have recognised an opportunity to become a multi-brand business owner and see wellness such as yoga and mindfulness and gaming as complementary to their current business offering.” n
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Bev Taylor
Wendy Hand
Women leading the way on our global stage InXpress Australia
Empowered and Powerful with InXpress When you invest in a franchise – especially as a woman – you want to be sure you are making the right decision for yourself and your future. So, how do you know a brand like InXpress will have your back? Here at InXpress, we believe behind every successful woman is a tribe of successful women (and men) who have her back. We have invested in our inaugural InXpress International Women’s Conference as a global brand, engaging all 14 countries with our network of over 430 franchisees celebrating successful female leaders. The conference demonstrated how the empowered woman is powerful beyond measure. InXpress is driven by 5 GREAT core values: Gives Back, Results Driven, Energetic Fun, All-in and Targeted Improvement. We are proud to announce that two of our Australian franchisees took home InXpress GREAT Global Awards. at this years’ conference. Wendy Hand, InXpress 102 was awarded Gold for the Results Driven Award Wendy reflected, “There are so many amazing women within the InXpress network who inspire me and make me want to be the best version of myself. I have a passion to take the business to the next level, and having a strong supportive female network around me makes a significant difference to my success.”
Global Franchise Award Winners Our award-winning business model makes for awardwinning franchisees.
Founded in 1999, InXpress has a long history in managing successful businesses around the world. With 400+ franchises globally, the multi award-winning business continues to grow. InXpress has already established strong relationships with trusted courier partners, providing access to highly competitive rates, leaving you free to concentrate on; building sales, working towards your goals and creating the lifestyle you want.
The InXpress Franchising Opportunity Build your own successful and profitable start-up business with the security of the world’s largest franchisor of global courier services. No freight experience is necessary; all you need is to be sales-oriented and have an aptitude for business. We’ll provide full training, with ongoing coaching and support. Recession-resistant, essential services industry Low entry and ongoing costs Proven business model for over 20 years
Bev Taylor, InXpress Bondi, was awarded Silver for the Energetic Fun Award
Comprehensive training and ongoing coaching
Bev expressed, “With women being a minority in a maledominated logistics industry, it’s great to share our “powers” and knowledge. It makes me happy to see events tailored to a specific market (women for this one) as it shows that InXpress supports the minority as well as the majority. InXpress gives us so much enthusiasm and inclusion to connect with our network and achieve our business goals.
Potential to earn unlimited passive income
No inventory, warehousing, vans or trucks Ability to work from anywhere
Get started with InXpress today! Phone 1300 097 857 or email sales.au@inxpress.com
inxpress.com.au
SPECIAL REPORT
Be your own boss
FOR LESS THAN $150,000 There’s plenty of choice for keen investors to buy a franchise for less than $150,000 and take the first step to business ownership. By Sarah Stowe
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f you intend to spend between $60,000 and $150,000 on buying a franchise, where should you start? Well, like any business search there are three key considerations. What can you realistically afford, and what kind of business do you want to operate? Do you in fact want to be a hands-on owner-operator or is an investor option your preference? It is really worthwhile spending time on evaluating your financial situation to clarify how much you can afford to invest upfront, taking into account repayments of loans, franchise fees and your living expenses. Armed with a fairly accurate budget you’ll be able to make more informed decisions about the viability of a business venture to suit your circumstances. If your preference is to invest in a franchise that someone else will manage, allowing you to remain with other employment or business opportunities, this will help refine your choices. And if you intend to own and operate your new business, then it’s crucial not only that you pick a venture that has profit potential but one that you will enjoy working in for some time to come. So what are the options? Here is just a taster of businesses in the range of $60,000 to $150,000 (add in GST too) available in the Australian marketplace.
TOP OF THE RANGE: $150,000 DONUT KING
While a full retail store will set you back several hundred thousand dollars, thanks to a new mobile van option, budget-conscious Aussies can invest in a Donut King business. Donuts to your door – this exciting development is now out and about, and ready to roll out across Australia. Q: How long has Donut King Mobile been in the pipeline? A: We spent time trialling the vans in different regions using existing franchise partners. Based on the results from these trials, we are excited to move forward and offer Donut King Mobile to the market. Q: How many franchisees do you plan to sign up in the next 12 months? A: We would like to have on the ground in excess of 30 vans. Q: This offers a more flexible and affordable option for franchisees – what’s the investment level? A: It will cost $139,000 + GST and normal franchise service fees will apply. As a launch bonus we are offering $2000 worth of coffee beans and we have a sales revenue guarantee for the first two weeks of trade. Q: Do you expect existing store owners to add this to their portfolio? A: This is an option that could complement our existing franchisees who would like to branch out and add events, or a mobile option to their existing Donut King businesses.
We are also expecting a lot of new interest, from people who want to be out on the road, being in charge of their own destiny. Q: How will you manage training etc if lockdowns continue over the next few months? A: We have had to look at different ways to facilitate training over the Covid period. In an ideal world we would like the new Donut King franchisees to train in our new training facility at Miami on the Gold Coast. If the franchisee lives in an area where travel is restricted, we will find an alternative way to train them close to their home. Q: Who are typical customers for the mobile business? A: The typical customers are from industrial areas, sporting groups, schools and corporate offices. Q: What’s different about this business model from other coffee vans? A: Donuts are the biggest staple of the Donut King business. By adding the DK product range to our vans, it enables our franchisees to tap into the equity of the brand and offer for sale products not commonly found on a coffee van.
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$100,000–$150,000 SPEEDFIT
Get into a fitness franchise with a difference. Instead of requiring clients to squat, lunge and run their way through a fitness program several times a week, SpeedFit provides a similar but more intense workout for a much smaller investment of time. The Aussie business harnesses electrical muscle stimulation with personal training techniques to maximise effort and produce results without the commitment of several trips to the gym each week. The business was established in 2013 and began franchising three years later. It’s a turnkey business, so site selection, studio fitout and deployment of marketing is part of the package. While franchisees don’t need to have a fitness qualification, anyone conducting client sessions is required to hold a Certificate III in Fitness. Every franchisee undertakes an initial two weeks of comprehensive training covering fitness techniques and business methods. Marketing support includes monthly campaigns, partnerships and local area marketing activities. There are additional costs: a $50,000 franchise fee, and $53,000–$55,000 equipment fee – however, equipment can be leased for $1000 a month. Right now the Perth-based business is expanding across the east coast of Australia.
$75,000–$100,000 HOME CARING
The at-home care sector is really taking off and this franchise is a joint venture model, with franchisees receiving a salary package and a 50 per cent share of ongoing profits. As a partner with the franchisor, a new franchisee invests $100,000 – the only extra costs are lawyers and accountancy fees. A finance package up to $85,000 is available for approved applicants. Home Caring is an approved Aged Care and National Disability Insurance Scheme (NDIS) provider, so many of its services are covered by NDIS funds and Home Care Packages. Services include aged care, dementia, disability and rehabilitation. While nursing, disability or dementia care experience is ideal for franchisees it is the alignment with the company’s values that is most important. Franchisees benefit from a comprehensive training program, ongoing operational support and a full suite of management tools to assist with the growth and success of their home care business.
$60,000–$75,000 DECKSEAL
$100,000–$150,000 MINUTEMAN PRESS
If you’ve never owned a business before, Minuteman Press could be just right for you. To get you started there is a comprehensive two-week training program based on all the experience of 40 years trading. There is marketing support and strategies in place to maximise the services on offer in this B2B model, which is a weekday operation with multiple revenue streams and a royalty incentive program. With almost 1000 outlets to its name around the world, Minuteman Press has considerable purchasing power. Franchisees also benefit from proprietary software. A good work ethic is essential for successful operation of the franchise. So too is a passion for providing top quality service and helping other business owners build their businesses.
$64,950
This is a hands-on business opportunity at an affordable $60,000–$70,000. DeckSeal began back in 2007 and traded for 11 years before venturing into the franchise field. As this is very much a hands-on business opportunity franchisees will need to add in the cost of a van or trailer. The business is so much more than the name suggests – it isn’t all deck work. In fact, the services on offer are quite varied, from timber structural services such as fences and screens, bench seats, garage doors, outdoor furniture, planter boxes, through to high pressure washing and concrete/paving cleaning and sealing. Key to the high standard of work franchisees deliver is access to top quality products backed up by software and training in quoting and estimating. Franchisees come from a variety of careers such as construction, government, corporate and the motor vehicle industry but share practical skills, a capacity for hard work, and are self-motivated.
INXPRESS
The logistics industry has been fundamental to business over the past two years with the ever-rising demands from e-commerce and the challenges of the pandemic. It’s something InXpress franchisees can handle; they love a fast-paced business environment and have a passion for sales and business building. In this B2B operation that started out back in 2009 franchisees are focused on finding the best shipping solutions for their customers. The company’s shipping platform is a one-stop shop for multiple carriers, but customers are only issued one invoice. InXpress works with renowned courier companies such as DHL, DNT, Startrack, Toll and UPS, and the scale of the business delivers franchisees access to competitive rates. Franchisees don’t need any experience in the freight sector as two weeks comprehensive training backed up by innovative software sets a firm foundation for the business. Read more about this brand and the logistics sector on page 44.
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SPOTLIGHT ON PIZZA
THAT’S AMORE Despite lockdowndriven demand, the pizza franchise market faces some challenges. But this is one sector that continues to rise, with players both large and small innovating to serve up the good stuff for their customers.
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izza takeaway and delivery brings in revenue of $3.9 billion in Australia, employing about 38,000 people across 6449 businesses. According to analysis firm IBISWorld, revenue is expected to rise at an annualised 1.4 per cent over the next five years to reach $4.2 billion by 2025–26. One of the key drivers of this growth will be a rising population. The rapid growth of new outer suburbs gives early entrants into the area a clear advantage, and larger networks are well placed to optimise the opportunities and take advantage of consumers’ discretionary spending. Takeaway and delivery have become the backbone of the pizza industry, and these services have been the lifeblood for any hospitality business over the last two years. Armed with tech tools that cater to convenience, savvy operators have benefited from the lockdown order-in trend. Over the last five years technology has been a crucial tool for the larger brands, with Domino’s and Pizza Hut both launching contactless deliveries, while smaller chains have introduced online ordering. While accessibility to third-party delivery services has benefited pizza franchises across the market, the heavy commission has eaten into profit over the last two years. Add in the cost of rent and there has been an overall decline in profit. Rising prices for ingredients, in part due to supply and distribution issues caused by the pandemic, and increased competition from other brands in the
market are expected to have an impact on profitability. Another factor that IBISWorld predicts will challenge the pizza industry is the further development of pre-cooked and fast-cooking healthy food options in supermarkets. In what has been a price-driven market, the good news is the continued demand for gourmet pizza, with consumers prepared to pay extra for premium products. Menu innovation will become increasingly important, suggests Pizza Restaurants and Takeaway in Australia report author Suzy Oo.
GETTING A SLICE OF THE ACTION
Dominated by a few household names, the pizza franchise market is nonetheless diverse, with smaller brands offering a more localised or niche offering – some including dine-in. Leading the pack is Domino’s which according to IBISWorld holds a massive 27.4 per cent market share. Its closest competitors are Pizza Hut, with an estimated market share of 5.7 per cent, and then Retail Food Group, which owns both Crust Gourmet Pizza and Pizza Capers, and has 4 per cent of the market.
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DOMINO’S
David Burness, CEO Domino’s Aus/NZ WHAT HAS BEEN THE TREND IN PIZZA SALES OVER THE PAST 12 MONTHS? With millions of people required to stay home and self-isolate, and Covid restrictions sending states and territories across Australia in and out of snap lockdowns, Domino’s has seen an increase in demand for food delivery. This increased demand has seen the company hire more than 4500 team members in the past 12 months to help make, bake and take piping hot pizzas to customers using Zero Contact Delivery. AS A HIGHLY DIGITISED BUSINESS, DOMINO’S HAS FOR SEVERAL YEARS LED THE WAY WITH ITS TECH DEVELOPMENTS. HAS EVERYONE ELSE NOW CAUGHT UP? At Domino’s, we run our own race and don’t compare ourselves to our competitors. We are proud to be a leader in the food-technology space, achieving many industry firsts in drone delivery, app ordering, voice assistants, artificial intelligence and augmented reality. But we don’t innovate for innovation’s sake. We do so with purpose and with our team members and customers front of mind – using technology to improve the experience for our team members and customers. HOW FAR AHEAD IS DOMINO’S PLANNING TECH INNOVATION? WHAT ARE YOU WORKING ON NOW? At Domino’s, we are always testing new concepts, from simple changes in online ordering that make it faster and easier for customers to process their online order, to concepts that rethink the way customers can order entirely. We are currently working on several exciting projects, including the next generation of online ordering (including both a website and app update). Stay tuned! HOW IS DOMINO’S BEST SUPPORTING FRANCHISEES – BEYOND THE TECH DEVELOPMENTS? Domino’s is committed to supporting franchisees across Australia and New Zealand and helping them grow. We recently launched an initiative called “Project Ignite” which will see the company invest approximately $100 million into the network over the next four years to improve store profitability and stimulate growth. This project features a number of support initiatives NOV/JAN 2021-2022 | 39 | WWW.FRANCHISEBUSINESS.COM.AU
including food-saving reductions, lease management fee support and reductions in new store build costs to help ignite store growth across Australia and New Zealand – creating greater efficiencies and scales of economy that benefit the entire Domino’s network. HOW DOES DOMINO’S DISTINGUISH ITSELF FROM COMPETITORS? Nobody delivers like Domino’s. To enable faster pickup and delivery times, we launched Project 3TEN – an initiative that aims to have a pizza ready for pickup within three minutes, or safely delivered within 10. Using advanced predictive technology and things like e-bikes and faster ovens, we have been able to serve our customers faster, hotter and fresher pizzas than ever before. Only Domino’s delivers Domino’s. You will never see a Domino’s meal delivered by anyone other than a Domino’s Delivery Expert. Our Delivery Experts are hired as employees, not contractors, with the same entitlements as other team members. We are proud to pay amongst the highest wages in the industry, including penalty rates for late nights, weekends and public holidays. Over the years, we have also implemented a number of safety procedures designed specifically for our delivery fleet to ensure the safety of our drivers and fellow road users, including providing safety equipment such as high visibility vests and helmets; undertaking regular vehicle maintenance and safety checks; conducting mandatory safety training; and utilising technology like GPS Driver Tracker to monitor speed and harshness of driving. Domino’s delivers more than just pizza – we take pride in supporting the local communities in which we operate. Throughout the pandemic, Domino’s has remained focused on looking for new ways to provide customers with joyful experiences, including but not limited to, paying up to $5000 worth of household bills for those who lost their job due to Covid19; helping more than 100 couples with cancelled weddings commemorate their original date with a pizza party for two; and donating more than 22,000 safe, hot meals to frontline healthcare workers and 13,000 more through our “Feed the Knead” program. It’s things like this that make Domino’s more than just a pizza company – we genuinely care about our customers and communities.
SPOTLIGHT ON PIZZA
LA PORCHETTA
Brendan Flanagan, national franchise development manager WHAT HAS BEEN THE TREND IN PIZZA SALES OVER THE PAST 12 MONTHS? Pizza sales continue to strengthen and they represent a significant share of our market revenue, however our accompanying lines of pasta and protein meals have also performed very well. HOW HAVE THE LOCKDOWNS IMPACTED FRANCHISEES’ BUSINESSES? Lockdowns have had a significant impact on our franchisees, with dining in-house being the obvious challenge. We have been fortunate in that we were already well set up to provide pickup and delivery options for our customers pre-pandemic and this has helped to further build customer loyalty. It has allowed our franchisees to maintain market position and provide support back to their communities. HOW HAS LA PORCHETTA KEPT UP WITH TECH INNOVATIONS DEVELOPED BY BIGGER PIZZA BRANDS? We continually explore areas of opportunity within the tech space, with a strong focus on providing increased value to our customers. We are now implementing a new online ordering platform with a loyalty program on our La Porchetta app. WHERE DO FRANCHISEES MAKE THEIR MARGINS AT LA PORCHETTA? Pizza is a clear profit leader, however our focus is on adding value for our customers through a range of accompanying items which assist both top and bottom line performance. Our model is based on volume and repeat custom to support profit margins. We’re also continuing to refine our model to achieve optimal efficiency in both people and processes and we work closely with franchisees to maximise cost efficiencies. WHAT ARE THE EXPANSION PLANS? Our focus continues to be on supporting our current network and carefully recruiting for new sites provided where our strict criteria are met. We are also looking at a variation of the model to meet the needs of the shifting market, especially as it’s evolved over the past two years. We are seeing the market model and consumer demand evolving and we are very much ready and excited to be a part of the shift.
WHAT’S DISTINCTIVE ABOUT LA PORCHETTA? La Porchetta holds a unique place in the market because of our core menu. Offering a range of lines in large volume is also a strong selling point. We do not pretend to offer all things to all people, however what we do really well is offer high quality pizza, pasta and main courses, including seafood, steak and our ever popular chicken parma. Of course if the customer prefers a vegan option, we also have that covered. Our focus on building customer loyalty is just as important as our menu and we do that by creating an experience for customers to enjoy with their friends and family so they want to keep coming back. Our clear separation from our competitors is our organic family environment, which some may say is our unique selling proposition, but really we believe it is about facilitating family memories and experiences and this is something very few of our competitors can manufacture.
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4 PIZZA BASES
Who else is slicing up the market? Global brand: Pizza Hut This global brand claims to be the world’s largest pizza chain with at least 12,000 Pizza Hut restaurants and delivery units. Australia has 270 stores. The cost of a store starts at about $300,000. In 2021 Pizza Hut Australia was awarded a 4-star franchise rating and unveiled a kiosk model for service stations. Allegra Funds holds the Australian master license for the brand. Gourmet pizza: Pizza Capers Founded in Brisbane in 1996 this gourmet pizza brand has been part of the Retail Food Group portfolio since 2012. It costs between $250,000 and $450,000 to buy a new store. There are 28 outlets, predominantly in Queensland. Lebanese pizza: Manoosh Pizza Pizza with a Lebanese twist – flat bread topped with oil and za’atar, plus toppings like cheese, pickles, veggies, labneh and meat and traditionally cooked over a wood fire. There are eight Sydney stores and one in the ACT. Local community: Town & Country Pizza & Pasta In business for more than 25 years, Town & Country Pizza & Pasta prides itself on a fun and flexible approach to business. With a focus on local community, each location has its own identity. There are 11 Victorian outlets in this group.
100% PLANT-BASED
Red Sparrow Pizza is a brand with a difference – a purely plant-based menu. This young pizza brand makes its dough using Napoletana techniques – fermented for at least 48 hours to improve flavour and digestibility, with each ball of dough being handstretched to order. This Melbourne-based business isn’t short on experimentation though, offering unique toppings on their daily specials. All their pizzas are cooked in Italian wood-fired ovens in just 60–90 seconds, which creates light bases with a crispy charred crust. As the business expands, vegan and plant-based pizza and other menu items will be prepared by a chef in-house with quality ingredients ordered by sustainable suppliers. Founders Michael Craig and Shelley Scott started out with restaurants in Collingwood and Prahran, and a neatly kitted out food truck catering for events. Now the pair are ready to franchise Red Sparrow and are looking to set up in new locations around Melbourne and expand interstate into Sydney, Brisbane and Byron Bay.
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SPOTLIGHT ON PIZZA
CRUST GOURMET PIZZAS
Jon Paul Partyka, general manager, Crust and Pizza Capers WHAT HAS BEEN THE TREND IN PREMIUM PIZZA SALES OVER THE PAST 12 MONTHS AND HOW IS THIS INFORMING CURRENT AND FUTURE BUSINESS STRATEGY? We’ve noticed a trend towards customers asking for more premium menu options and delivery is still in high demand due to Covid-19 restrictions. Our customers are also looking for more options at a lower price point to add to their favourite pizza orders. We’re structuring our menus to cater to both customer segments. WITH THE SIGNIFICANT RATIONALISATION AND RESTRUCTURE AT RFG, HOW IS THE BUSINESS BEST SUPPORTING FRANCHISEES NOW? Our franchise partners are very well supported; they have a direct line of contact with me at any time. Not only does this provide our franchise partners support as and when they need it, it gives me a better understanding at a store level. I’m in the proverbial trenches with them, which allows us to make a meaningful impact at the support office. HOW IS CRUST DISTINCT FROM ITS COMPETITORS? We’re known for our gourmet pizzas. The quality of our product is our main point of difference. When we do something, we take great pride in it, and ensure we offer our customers a truly exceptional product. A good example of this is in our Crust stores where we season, cook and slice our chicken breast all in-house – we don’t use anything bagged, it’s all prepared and cooked instore. We’re also known for our value proposition. While you can go get a cheaper option elsewhere, our customers understand that ultimately you get what you pay for. We pride ourselves on the value we bring our customers through our price versus gourmet ratio. We’re an open book. If you go into any Crust store, you’ll see your food being prepared before your eyes. We’ve designed our stores this way in an effort to open up our kitchens to our customers – we want our customers to see their food being prepared and share the busy kitchen atmosphere with them. WHAT’S GOOD ABOUT BUYING INTO THE CRUST BRAND? Business is booming and now has never been a better time to buy into QSR at Retail Food Group. Our innovative menu options, the perfect mix of premium quality product at competitive prices and high-level support for franchise partners is translating into fantastic results. We are also set to launch an exciting plant-based menu at Crust that will not only entice a new customer segment but increase the transactions of our existing customer space – it’s a launch that will position Crust as the leader in the category. n
6 PIZZA TRENDS
Increasing deliveries during lockdowns have helped the pizza market Mobile apps have made online orders easy Population growth looks to drive new market opportunities Increasing competition is pushing speedy menu innovation Supermarket product innovation is a challenge to fast food operators Gourmet and healthy pizza options are proving popular even with increased prices Source: IBISWorld Pizza Restaurants and Takeaway in Australia Report, June 2021, author Suzy Oo. NOV/JAN 2021-2022 | 42 | WWW.FRANCHISEBUSINESS.COM.AU
6 THINGS ABOUT BUBBA PIZZA
1. This family business was founded in 2000 in Melbourne and now has about 20 outlets operating in Victoria. 2. The focus is on building up the delivery business with in-house as well as third-party delivery companies. 3. A new restaurant will cost about $300,000. 4. Menu updates include a value pizza range for pick up only: large pizzas for $9.90 and waffles and ice cream to attract latenight customers. 5. Bubba Pizza has introduced the dark kitchen concept which it will roll out at the end of the year. 6. Expansion plans include Sydney and NSW.
ADVERTORIAL
FRANCHISEES AND FRANCHISOR PARTNERING TO DRIVE INNOVATION SUCCESS AT 7-ELEVEN 7-Eleven Australia is making major investments in technology and innovation to set itself up to continue to lead the convenience market in the years ahead. The investment is focused on the customer, to ensure that the technology supports customer needs across bricks and mortar stores and digital interactions. The company’s technology ambition is all about making customers’ lives easier by providing products and services when, where and how they want them. 7-Eleven’s franchisees and their teams not only benefit from the insight and sales building opportunities the technology provides, but also play a significant role in testing, implementation and customer engagement. Nouman Khan is a second generation 7-Eleven franchisee, who has been with the network as a franchisee for more than 15 years. Starting in convenience in his father’s 7-Eleven store when he was young, Nouman now owns and operates two 7-Eleven stores in Minto and Bankstown in Sydney. Mr Khan says that embracing digital such as the new My 7-Eleven app with integrated fuel price lock, offers, loyalty and personalised rewards adds value to his regular customers, as well as attracting new and repeat customers to the brand overall. “Having a business wide digital system makes it simpler to consistently reward my customers and give them extra value,” Mr Khan said. “We are all creatures of habit, and this app can help establish that initial connection with my store and 7-Eleven. It gives people reasons to try 7-Eleven and to keep choosing our stores over the competition.” The simplicity of the app is critical to both customer and team member engagement. “When the technology is simple to use, like the My 7-Eleven app, it’s easier to have a conversation with a customer, or to show them on your own phone how it might benefit them,” he said. “When it’s simple and easy to use for everyone, the confidence
level is high and that makes it easy for team members to have conversations about value, freebies and rewards with customers. His expertise as both a franchisee and in convenience retail means he often plays a role in testing, and providing feedback for new innovations being developed by 7-Eleven. “One of the most important aspects of any new innovation’s success is how easy it is at store level. If it’s too hard operationally team members aren’t as confident to talk to customers about it. You get customer disappointment if something that’s advertised isn’t delivered well too,” he says. “Bringing a franchisee perspective to changes being rolled out identifies operational constraints. That in-store perspective sees any problems that need resolving or things that might be improved. “We are the face of the brand for customers so we have a lot of insight into what might work for them and what would be pain points. We all benefit when innovation is successful.” In the 7-Eleven network, in addition to the business advice and coaching provided, franchisees share knowledge and support each other. This is critical when innovations are being rolled out. “I think when franchisees see their peers embracing innovation it creates a sense of ease that it’s possible to be done. They can relate to their peers, and sometimes just want to talk to another franchisee to ask questions or provide feedback. Mr Khan also believes innovation success is heavily influenced by the franchisees and leaders in stores. “There’s tools, training and even videos that 7-Eleven provides, which are important, but as the leader of my businesses, it’s up to me to ensure that innovations are successfully implemented in my stores,” Mr Khan said. “If the franchisee or store leader is on board with the innovation, the rapport you have with your team means they embrace it a lot quicker and faster. “It’s key that I talk with my team about new initiatives, the benefits to our customers. Once the customer is at the heart of those conversations, everything else falls into place.”
SPOTLIGHT ON LOGISTICS
PACKED WITH POTENTIAL One Aussie industry that has thrived through the pandemic has been logistics. With in-built resilience, this fundamental service has also benefited from the mega boom in online shopping.
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he upward trajectory of e-commerce has shifted dramatically. A report by management consultancy Accenture, Finding Value in Disruption, reveals that consumers who before the pandemic shopped online for one in 20 of their purchases are now buying one in six items through e-commerce. The authors write, “Post and parcel organisations must respond quickly to the changes that retail is experiencing and offer services that meet their needs, or risk losing out on market share.” Innovation and flexibility has been core to the franchised chains that operate within this sector. At Pack & Send, for instance, the $5.2 million invested in technology before the pandemic proved a strong foundation for the network’s record growth. “Essentially, the market has accelerated throughout 2020–21 to meet our existing strategy,” says Nicholas Woodward, country manager.
“The evolution of the Pack & Send business model, incorporating our innovative proprietary technology, together with the increased demand for e-commerce to fulfilment, has seen record sales and enabled nine franchisees since July 2020 to commence and fulfil their multi-unit franchise business goals.” Looking ahead, the forecast is that fewer than 25 per cent of businesses will revert back to pre-pandemic models. The coronavirus report suggested a clear majority will move online – remodelling their supply chains to rely on third-party companies, like Pack & Send, to fulfil customer deliveries. “Commerce and consumer behaviour has forever changed because of Covid-19 and that is playing to the strengths of Pack & Send, with its national network of service centres and shipping technology capabilities,” says Nicholas. In fact Accenture predicts that by 2023, more than 50 per cent of all e-commerce purchases will be delivered from local inventory. “A consequence of this growing trend is that a large proportion of Pack & Send ser-
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The business model: Pack & Send
There are national opportunities available in all major metropolitan and regional areas. New Pack & Send franchise investment includes: a. Initial license fees: Initial Franchise license fee – $72,000 – 10-year term, with no cost renewal option for further 10-year term. Initial software license fee – $5000. b. Service centre establishment costs: This includes fitout, equipment, packaging supplies and other (stationery/office supplies, legal costs, uniforms, rent deposit, training, accounting software, marketing brochures and supplies). Investment ranges from $103,000 to $190,000 plus working capital. Ongoing fees and costs include royalty, national advertising fund, technology and administration costs which are detailed in Pack & Send’s disclosure document.
Pack & Send franchisees enjoy record growth
vice centres hold stock for such customers offering a pick, pack and delivery solution. To service this growing demand, Pack & Send is rolling out a national micro-fulfilment solution (late 2021).” Micro-fulfilment works with a network of small format fulfilment facilities that are close to the end-consumer, where customers can have their items delivered in as little as one hour after they place an online order. Under the brand’s micro-fulfilment solution national customers will be able to understand their inventory in real time across the network, have the capability to transfer stock between locations and optimise their order processing – all from the franchise’s proprietary technology platform.
TRACKING A GROWTH TRAJECTORY In the first month of Covid restrictions, courier firm Aramex reported 48 per cent growth in deliveries in comparison to the same period in the year prior. In 2021 the network has continued to experience
Global system-wide sales (Australia, UK, NZ) for the financial year 2020–21 closed at $82.4 million, representing a 32 per cent increase on the prior financial year. Franchisees can earn revenue through both active and passive income streams. Some passive income is derived from technology and e-commerce solutions: • an online “Quote, Book and Pay” system for sending pre-packed parcels anywhere in the world (domestic, export and import). The solution provides customers with a simple DIY parcel-sending solution. • an e-commerce shipping technology platform Pack & Send Live, which provides e-tailers with “real time” freight quotes for both domestic and international shipments at checkout – automating the booking process.
Pack & Send on sustainability
Pack & Send has been a signatory of the Australian Packaging Covenant since its inception in 2010, with policies and commitments to reduce, reuse and recycle packaging materials. For instance, one small gesture is encouraging customers to dispose of non-recyclable, non-biodegradable packing materials (such as packing peanuts) at service centres for reuse. The business is: • undertaking its first carbon life cycle assessment to thoroughly measure environmental impact in the supply chain • reviewing the potential for renewable energy at retail centres including rooftop solar • intends to prioritise and incentivise adoption of electric or hybrid van fleets once vehicles become affordable.
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SPOTLIGHT ON LOGISTICS
Aramex delivering a more sustainable future
As a global organisation operating in over 600 cities across 65 countries Aramex has operational impacts on the environment. However, it is actively committed to minimising its environmental footprint and reducing its greenhouse gas emissions through a number of different investments and projects, including renewable energy, green building, alternative fuels and operational efficiency. “We recognise that it is our responsibility to decrease our consumption of natural resources, reduce our waste systems and use renewable and sustainable resources and energy sources,” says Aramex Oceania CEO Peter Lipinski, pictured above left. Aramex is a signatory of the United Nations Global Compact and is committed to Goal 13 of the UN Sustainable Development Goals; Climate Action. growth of 16 per cent on overall growth of 30 per cent in 2020. Further acceleration of e-commerce growth in Australia presents many opportunities to enhance the integrated delivery solutions for B2C customers. Parcel delivery has always experienced peaks and troughs around national holidays and more recently with e-commerce events like Black Friday. Aramex has shown it can handle the demands of peak seasons. The network’s Blu Couriers on-demand fleet allows regional franchisees to scale up to meet the demand of exceptionally busy trading periods, or to facilitate unexpectedly busy delivery periods for specific customers. Aramex’s 25,000 Aussie business customers also have access to 800+ Parcel Connect locations across Australia, providing choice and convenience. The Aramex Parcel Connect service taps into a vast network of local businesses to provide a close and convenient drop-off and collection point for parcels.
The business model: Aramex
There are three franchise models: • Regional franchisees build the brand in their local communities, operating local depots, employing office staff and overseeing a network of courier franchisees. There are 28 regional franchises operating nationally, with limited availability. • Courier franchisees are the face of Aramex, developing strong business ties with customers as they pick up and deliver parcels in their designated territory. There are currently more than 900 courier franchisees in Australia. Courier franchisees have the ability to grow their territory by increasing the number of customers they pick up for, or by increasing the number of parcels they collect from each customer, with the end goal of selling their business for a profit. • Courier lite franchisees provide pick-up and delivery services within a non-exclusive focused area, typically based on postcode. Enjoying many of the same advantages as courier franchisees, courier lite franchisees benefit from low start-up costs (under $10,000) and an initial three-year term, with the option to renew for two more three-year periods. Courier lite is the perfect entry-level model. The purchase of the franchise business is the primary upfront cost. To become a courier franchisee or a courier lite franchisee you will also need a van that is less than five years old. There are ongoing operating costs and levies. Franchisees primarily make their income through pick-up and delivery of parcels.
With real-time track-and-trace technology and omnichannel customer service, Aramex is dedicated to keeping receivers updated throughout their parcel’s journey. “Communication with our sending customers is a high priority. We are their delivery partner and ensure communication is seamless at all stages of the delivery process,” says Oceania CEO Peter Lipinski.
BOOSTING EFFICIENCIES Australia Post reported that there were 200,000 more online shoppers during the Covid-19 pandemic with online sales volumes up 20 per cent on 2019, points out InXpress country manager James Buck. “Based on this growth we estimate Australians shipped more than 1 billion parcels through companies like InXpress over the last 12 months, up from 934 million parcels the prior year,” he says. “Booming online shopping trends have driven e-commerce shipping volumes to new heights, with Australia the 11th
largest e-commerce market in the world, forecast to exceed USD30 billion by 2024,” he adds. InXpress has built its own proprietary software WebShip+, that it provides to its network of over 480 franchised freight consultants globally. “Our customers are looking for integrated shipping solutions, whether it be express air and road freight booked through WebShip+, or directly from their e-commerce shopping cart to reach their customer as quickly and efficiently as possible. “InXpress is meeting this market need having developed shopping cart integration from WebShip+ into leading platforms such as Amazon, Shopify and WooCommerce (as well as others) meaning store owners can access the InXpress network of global and local courier companies, through our established API’s, automating the data transfer process by booking shipments electronically.”
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ADAPTING TO CUSTOMER EXPECTATIONS Aussie companies are able to take advantage of an increased number of Free Trade Agreements that smooth the way for international movements of cargo and cross-border trade. “InXpress franchisees help those companies book and manage their international freight requirements, ensuring their goods arrive in full and on time.” James points to the significant demand for domestic shipping services during the last 12-18 months which has seen InXpress grow its revenue from shipping services by almost 40 per cent on 2020. “Given we are an established network present in the Australian market for over 10 years, this is significant,” he says. “This growth is due to deploying the purpose-built scalable WebShip+ platform solution for franchise owners and shippers, ready to cater for forecast market demand as well as the re-investment we have made in our people and technology ensuring we are as agile as the market requires us to be in order to deliver a world class customer experience.” n
Business model: InXpress
InXpress operates a franchised business model where its freight consultants help their B2B and B2C customers choose the best options to suit their shipping needs from leading global and local carriers such as DHL, FedEx, TNT, UPS, Startrack and Toll. The business has been operating for more than 20 years within the courier, parcel post and e-commerce sector where growth is being driven by the popularity of events and sales such as Black Friday, as well the introduction of ‘buy now pay later’ payment options, scalable and affordable logistics costs and enhanced delivery networks offering shorter delivery timeframes, including same day and next day services. Business benefits include; • Low entry and ongoing costs • No inventory, warehousing or vehicles required • High passive income and an unlimited earning potential.
InXpress on sustainability
“The transport and logistics sectors are a significant emitter of carbon, InXpress does not run any fleet or own any warehouse assets, so we do not physically carry any cargo. We partner with responsible companies and global leading courier companies that both acknowledge and value the importance of operating sustainably and driving toward market leading practices in this area to reduce their footprint.”
PARTNER WITH A LEGAL PROFESSIONAL WITH COMMERCIAL ACUMEN Franchising is an important decision for both franchisors and franchisees. We are on hand to provide strategic, practical solutions to help you plan and achieve your short and long term goals. Unlike other legal firms which provide legal advice piecemeal, we look at the whole picture, help you with risk management, compliance requirements to eliminate unwanted surprises. Our principal is an Accredited Specialist in Commercial Law and has valuable in-house experience, has advised businesses for more than 25 years and understands first hand the many challenges faced by business owners. Contact Christine Lau on (03) 9653 9203 or via email at Christine@laulegal.consulting for a confidential discussion to start or grow your business NOV/JAN 2021-2022 | 47 | WWW.FRANCHISEBUSINESS.COM.AU
SPOTLIGHT ON TOURISM
Room to grow What’s the prospect for businesses in the Australian tourism sector?
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f there’s one industry that has been heavily impacted by the Covid pandemic it’s tourism. The good news is the sector is looking up, so now might be the perfect time to investigate options to fulfil that business dream. It doesn’t take an analyst to spot the effect of Covid on tourist-related businesses across Australia. Heavy restrictions on inbound travel have constrained many tourism operators, and with lockdowns still part of the Australian business scene, we’ve all been more homebound than we expected. Revenue has inevitably dropped. However, analysts can provide more detail on the impact, and project what happens next. In its report published in March 2021, analysis firm IBISWorld anticipated industry revenue would decrease this year by 38.1 per cent. However, report author Nathan Cloutman tells Inside Franchise Business, “The latest Covid-19 outbreaks at the start of 2021–22 have put further pressure on the Australian tourism industry. “In particular, Victorian and New South Wales-based tourism businesses have faced further financial hardship due to the extended lockdowns in their respective states, which have essentially halted demand from domestic travellers. “As a result of renewed lockdowns in Australia, the projected recovery of the tourism industry is expected to be slower than initially forecast earlier in 2021.” However, there will be a rise in fortunes as we move into 2022, he suggests. “Despite the ongoing negative effects of
the Covid-19 pandemic, tourism demand is projected to rise later on in 2021–22. The Australian population is becoming increasingly vaccinated for Covid-19, which is reducing the potential for further outbreaks and lockdowns. “Further, it is likely that Australia will open up its borders to countries that have been successful in their vaccination programs in early to mid-2022, providing a boost to tourism operators. “Nonetheless, ongoing fears relating to Covid-19, the likely cautious approach to easing Australia‘s international border controls and downturns across the global economy are all anticipated to limit the industry’s recovery in the short term.” The good news from the analysis firm is the sector is projected to recover over the next five years – although this bounceback may be less of a bounce and more of a gradual rise. “A recovery in tourism activity is likely to encourage increased investment across the industry over the coming decades,” wrote Nathan. “Overall, industry revenue is projected to rise at an annualised 15.9 per cent over the five years through 2025–26, to $149.1 billion.” To get an overview of the tourism sector, and the hotel business within it, Inside Franchise Business has drawn on IBISWorld reports Tourism in Australia, March 2021, and Hotel and Resorts, June 2021. THE STATE OF THE TOURISM INDUSTRY Overall the sector is valued at $71.2 billion, a drop of 11.5 per cent over five years.
WHAT’S INCLUDED IN THE INDUSTRY ANALYSIS? IBISWorld calculates revenue based on expenditure, so it includes direct and indirect tourism firms; retailing, transport, purchases of food and beverages from restaurants, and accommodation are the largest sources of revenue for industry operators. COSTS OF THE SECTOR Accommodation, hospitality and travel agency businesses have significant wage costs although a large proportion of casual and seasonal staff are on low average wages. As a share of industry revenue over the past five years, some firms have boosted staffing levels to provide a higher level of service while others have dropped employee numbers as they automate processes. Rent costs have increased as a share of industry revenue over the past five years due to rising demand for property in key tourism areas. WHERE DO WE GO? New South Wales, Queensland and Victoria are most popular with domestic tourists. However, the Northern Territory, Western Australia and Tasmania have attracted interstate visitors with successful advertising campaigns. HOW IS TECHNOLOGY AFFECTING THE SECTOR? The trend for online booking services has forced businesses to embrace internet bookings, and technology is increasingly important. Expect to see companies build
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WHO’S IN THE BUSINESS? In a sector dominated by airlines only two franchised businesses make much of a dent in the market share. Accor, the Australian subsidiary of the French multinational hotel group AccorHotels, has 1 per cent of the tourism market but is the major player in the hotel sector, holding 14.3 per cent of the market. Accor has the Sofitel, Novotel, Mercure and ibis brands, as well as the Mantra, Peppers, BreakFree and Art Series brands in its hotel portfolio. Providing hotel quarantine and a rise in domestic travel since the second quarter of 2020–21 have both helped the company through the pandemic. Flight Centre Travel also has a 1 per cent market share. The Australian publicly-listed company is the largest player in the travel agency and tour arrangement services industry. It operates a diversified range of travel agency brands including Flight Centre, Student Universe, Travel Associates and Corporate Traveller. Flight Centre owns online travel agency BYOJet and Aunt Betty. As a result of Covid, the company has closed more than 100 underperforming stores in Australia and reduced employee numbers.
OTHER OPERATORS WHO FRANCHISE THEIR VENUES
up their social media platforms. In regional areas easy contactless payment options for domestic and inbound tourists will become more common. THE GOOD NEWS AHEAD On a financial front, the five-year forecast of a relatively weak Australian dollar is likely to encourage international visitors. As a poor exchange rate also discourages outbound travel, more Aussies are likely to skip the overseas trips and this should equate to a rise in domestic tourist visitor nights. More businesses are likely to open up, and they will need more staff. Wage costs are forecast to decline as a share of revenue over the next five years, as industry operators improve efficiency. The serviced apartments sector is projected to remain a strong challenger to traditional hotels over the next five years – there’s more investment in and continued construction of new serviced apartments. Budget accommodation is likely to be impacted by the continual popularity of Airbnb, and hotels are likely to seek alternatives to low prices to attract guests. Increasing tourism activity in Australia is forecast to lift industry profitability over the next five years, predicts IBISWorld. Overall, industry revenue is projected to rise at an annualised 15.9 per cent over the five years through 2025–26, to $149.1 billion. The government has a campaign to boost the tourist industry: Tourism 2030 will look at improving tourism infrastructure, streamlining regulations and developing marketing campaigns. n
Choice Hotels Asia-Pac is a fully-owned subsidiary of Choice Hotels International, a publicly listed company in the US. Brands under the Choice Hotels banner include the Ascend Hotel Collection, Clarion, Quality, Comfort and Econo Lodge. The global business has more than 7000 hotels and 570,000 rooms across 35 countries and territories. Quest Apartment Hotels is a home-grown business that has more than 170 properties across Australia, New Zealand, Fiji and the UK. Now linked with Singapore-based The Ascott Limited, Quest was the first business to receive a 5-star rating on the Australian Franchise Rating Scale. Big4 Holiday Park is a marketing cooperative. All parks are individually owned and operated, some by families and others by corporates such as NRMA Parks and Resorts and Ingenia Holidays.
THE BIG REVENUE NUMBERS TOURISM in 2021: $71.2 billion HOTELS in 2021: $5.2 billion 11.5% 15.9% 2025–26: $149.1 billion 2025–26: $13.2 billion 15.9% 20.4%
THE INFLUENCERS Six elements that help a hotel chain thrive:
A loyal customer base
Proximity to key markets
Management of seasonal production
Having a clear market position
Access to multiskilled and flexible workforce
Optimum capacity utilisation
Source: IBISWorld’s Tourism in Australia, March 2021, and Hotel and Resorts, June 2021. NOV/JAN 2021-2022 | 49 | WWW.FRANCHISEBUSINESS.COM.AU
SPOTLIGHT ON TOURISM
Wellness at home and away T
he latest wellness trends are showing consumers are keen to spend on their mental and physical wellbeing - at home and away.
A global report Amex Trendex: Consumers Prioritizing Wellness and Mental Health with their Time, Money and Travel Plans reveals a shift in focus around the world, with lockdown-weary consumers choosing to spend time and money on exploring nature, relaxation and exercise. In Australia 47 per cent of respondents are spending more than they have in previous years on wellness items, with natural vitamins and supplements (39 per cent), in-home fitness equipment (31 per cent), and organic food (30 per cent) ranked as the top three item. And the trend will continue, with those three categories the big focus for future spending. Consumers surveyed across seven countries (Australia, Canada, India, Japan, Mexico, the UK and the US) are planning to spend up on travel as a way to boost their wellbeing - in fact 88 per cent admitted a holiday is good for their mental health. In Australia 54 per cent of those surveyed want to spend time outdoors on their vacation, and 55 per cent say they would be willing to pay extra for wellness activities on future trips. Covid-restrictions have shifted consumers’ mindsets and there’s a focus on looking after ourselves, the survey reveals, with Aussies particularly focused on exploring the outdoors. Tourist destinations such as the Big4 campsites can attest to that. In June 2021 the holiday park business predicted $80 million in sales this year, a significant rise on past performance, based on its recent figures. Big4’s total online revenue grew 94 per cent, cabin revenue rose 101 per cent and site revenues increased by 76 percent. And Belinda Thomas, GM business development at Big4, believes the uplift isn’t just from banned international travel. She told Seriously Social podcast host Ginger Gorman “it’s this urge to want to get back to nature and to have these different and unique experiences as well that is driving that.” n TheAmex Trendex online poll was conducted by Morning Consult between September 9-15, 2021 with 3,000 respondents across Australia, Canada, India, Japan, Mexico, the UK and the US. Respondents had a household income of at least US$70,000 and traveled by air at least once in 2019.
Big4 Castlemain Gardens Holiday Park
GOING GREEN WITH BIOPHILIA
Biophilia is a term that describes our natural affinity with nature and green spaces. A concept born in the 1960s it is now inspiring a world of design, connecting us with the natural world to improve our physical and mental wellbeing. An article in New Scientist in March 2021 indicated the positive impact nature has on our mental-health spans from reducing depression and improving sleep to boosting happiness and social interactions. According to Global Wellness Summit, biophilia is here to stay. “People will demand a connection to nature; it will be the way we live our lives. Biophilia is not a “trend” but the longterm future of architecture and design.”
FIT FOR PURPOSE
Amex found the majority of adults surveyed (78 per cent) agreed they are working on more goals tied to health and wellness than in previous years with more than two-thirds (70 per cent) planning to try out a new fitness or wellness activity to improve their well-being. So which franchise brands are in the zone? There is a host of options for potential franchisees to choose from including the City Cave Float & Wellness Centre which has just announced a massive expansion plan across the country; US brand StretchLab which launched here this year; brand new elite sports performance-inspired concept The Recovery Lab;, and Club W and Fernwood Fusion (featured on page 22), new wellness ideas from long term fitness experts. Wellness extends into other areas, as the survey showed. For retail franchises consider The Source, packaging-free wholefoods retailer, or supplement stores EliteSupps. NOV/JAN 2021-2022 | 50 | WWW.FRANCHISEBUSINESS.COM.AU
SPOTLIGHT ON HANDYMAN SERVICES
Building the future Will tradies always be in demand? Latest industry report reveals market trends.
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BISWorld’s Tradesman and Handyman Franchises in Australia Report (December 2020) puts the spotlight on the sector’s potential. Author Anthony Kelly predicted late last year that the sector would suffer a short-term drop in demand because of the impact of Covid-19, with constraints on building supplies and tools because of a disrupted supply chain. He forecast a drop of 2.1 per cent in revenue over the five years to 2021, to $959.5 million. The good news is a forecast rise of 2.2 per cent over the next five years to 2026 to reach a revenue of $1.1 billion. The number of businesses is expected to increase by 1.5 per cent from 5550, with employment rising slightly, 1 per cent from the base of 8350. So those are the figures. What of the trend, and the demand for a tradie to fix or build home projects? Anthony Kelly writes: “Despite the industry’s current contraction, long-term demand for tradesman and handyman franchises has been underpinned by the growing trend for households to outsource labour-intensive manual tasks and the desire for businesses to operate in a broader franchise structure.” Is the Covid drop a blip? Anthony is certainly positive about the long-term prospects for the sector. “The continued expansion in the number of households, along with a moderate
rise in capital expenditure on private dwellings, is projected to provide the platform for industry expansion over the next five years,” he writes. “Operators are also anticipated to derive some stimulus from the rise in the number of housing transfers and the stronger trend in household discretionary income. These factors will likely boost spending on minor home renovation and repair work and garden maintenance over the next five years.” So what influences the sector’s growth? Six external factors are at play in driving the tradesman and handyman industry: 1. capital expenditure on homes 2. demand from building construction 3. number of households 4. number of housing transfers 5. real household discretionary income 6. consumer sentiment index. This is a sector dominated by franchise groups, with the Jim’s Group leading the way with more than a third of the market (35.5 per cent). O’Brien’s, which franchises its electrical and plumbing divisions, sits with 17.9 per cent of the market, and the VIP Group holds a 15.1 per cent market share. Hire A Hubby is estimated to have a 5 per cent market share and the Grey Army accounts for about 4 per cent of the market. Anthony Kelly believes the franchise model benefits its business owners over independent competitors because of the capacity to grow market share.
Good reputation Clear market position Qualified workforce Ability to compete on tender Flexible operations that respond to market demand
THE FUTURE Operators providing services such as gardening and minor renovations are most likely to generate demand, he suggests, as householders leave skilled tasks to tradies.
WHAT TO WATCH FOR
IBISWorld has highlighted the following issues ahead: • Despite the strength of marketing and branding, competition from sole operators will continue and have most impact on franchisees in regional areas, where local recommendation rather than a franchise brand has more clout. • The quality of work and the price of the service will become more important, and internal competition among franchises is likely to grow. • Franchisors will look to franchisee compliance to ensure services provided meet the standards set by the brand. • There will be a need to boost marketing and promotions in the market, and that is likely to lead to an increase in franchisees’ marketing fees. n
MARKET SHARE
THE RIGHT TOOLS FOR SUCCESS • • • • •
“As a result, franchise business models are anticipated to yield stronger returns than those generated by independent operators over the next five years. In addition, the industry is forecast to benefit from franchisees broadening their skills base as they seek to appeal to a wider market over the period.”
35.5%
Jim’s Group
17.9% O’Brien
Source:Tradesman and Handyman Franchises in Australia Report (December 2020) NOV/JAN 2021-2022 | 51 | WWW.FRANCHISEBUSINESS.COM.AU
15.1% VIP Group
5%
Hire A Hubby
4%
Grey Army
WALK YOUR OWN PATH! 2020
Top 10
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If you are going to purchase a franchise, how do you know which is a great location? The answer is to look at the numbers.
PETER BUCKINGHAM Spectrum Analysis
H
ow often do we make a decision because it feels right? In most cases you are probably proven correct, however gut instinct doesn’t always deliver the right answer.
Fortunately, Australia has a wealth of information to help you make the correct decisions. For starters, the Australian Bureau of Statistics (ABS) provides excellent, reliable information. The census, taken every five years, gives us a snapshot – or a balance sheet, if you like – of Australia on a certain date. So the
census of August 2021 will reveal we had a population of X, average income of Y, and Z per cent of us were born overseas. We can even compare this with the 2011 and 2016 censuses if we want. However, most of us do not want to look backwards – we want to know what is going to happen in the future.
GROWTH FORECASTING
Maps courtesy of Spectrum Analysis
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We can forecast growth simply by extrapolating two past points in time, finding the difference and projecting it into our forecast. However, the ABS offers a more sophisticated approach. For instance, in October 2019 the ABS released its forecasts for 2017–2032 for population projections by gender and by five-year age groups for the Department of Health. This data is the gold-level data for consistently looking at future population growth, having taken in contributions from states, councils and federal policy settings to come up with the best available projections at that time. It is important to note that while Covid has had some impact on this, an area’s overall demographic trend will follow the same trajectory. So stable areas will remain strong, growth areas will continue to expand, and for the next few years we expect some regional development will exceed expectations. According to Treasurer Josh Frydenberg and the recently released fifth Intergenerational Report, Australia’s population is expected to reach 38.8 million in 2060–61, six years later than was forecast. We can see the small “speed bump” induced by the slowing of international arrivals during the pandemic, however the long-term effect can be altered by Commonwealth migration policy.
FRANCHISE BASICS
GROWING IN THE RIGHT LOCATIONS
FRANCHISE BASICS Maps courtesy of Spectrum Analysis
A franchisor setting out territories should be taking into account trends in demographics and certain age groups. If we look at an area like Wyndham in Melbourne or Bringelly in Sydney, the population numbers are expected to skyrocket. Let’s see what the figures tell us about Wyndham in the outer south-western suburbs of Melbourne, between the Victorian capital and the regional city of Geelong.
If you want to see the small changes that leads to the graph above, we can see this below. WYNDHAM Projected total population: 2017: 246,455 2022: 314,957 2027: 381,003 2032: 444,605 A predicted 80 per cent population change between 2017 and 2032 equates to an increase of 198,150 people in the area. There’s more to be learned by looking at the expected growth in young people in the region. Age 5–19 projected population growth: 2017: 51,164 2022: 69,551 2027: 86,664 2032: 102,560 In the 15 years from 2017 to 2032 this cohort is expected to double in size, a 100 per cent increase which adds a further 51,396 youth to the population. So whether you are selling mortgages, kids’ sports lessons or other services for young families there is plenty of potential. By contrast, Port Stephens in New South Wales is still growing, but it is becoming a retirement centre.
PORT STEPHENS Projected total population: 2017: 73,520 2022: 76,812 2027: 79,578 2032: 81,638 That’s an 11 per cent projected change in population by 2032, or 8118 people. But even though the population is expected to rise, the number of young people is actually forecast to drop. Age 5–19 projected population growth: 2017: 13,522 2022: 13,487 2027: 13,397 2032: 13,203 There are likely to be 319 fewer people aged between five and 19 in 2032 than there were four years ago, a fall of 2 per cent in the number of school-age children. So while opening up a kids-focused franchise in Port Stephens might be commercially viable if further investigation and analysis is conducted, the growth is unlikely to match other high-demand areas which are continuing to grow and attract young families.
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WHICH AREAS ARE SHOWING THE MOST GROWTH? A geographic area with a population of between 30,000 and 130,000 people, and in a regional area more than 20,000 people, is referenced by the ABS as a Statutory Area 3 or SA3. The two charts below show the regions with the most growth forecast – first by the population numbers, and then as a percentage. By # change (> 50,000) STATE
POPULATION PROJECTION 2017
POPULATION PROJECTION 2032
# CHANGE
Wyndham
Vic
246,455
444,605
198,150
Whittlesea–Wallan
Vic
233,187
398,667
165,480
Casey–South
Vic
187,712
332,759
145,047
Tullamarine–Broadmeadows
Vic
176,098
288,017
111,919
Melton–Bacchus Marsh
Vic
167,750
279,517
111,767
Bringelly–Green Valley
NSW
112,509
220,155
107,646
WA
199,048
306,204
107,156
Sydney Inner City
NSW
239,553
339,883
100,330
Blacktown–North
NSW
100,976
193,164
92,188
Melbourne City
Vic
159,050
249,405
90,355
Ormeau–Oxenford
Qld
132,732
216,042
83,310
Cardinia
Vic
102,704
176,923
74,219
NSW
166,032
235,193
69,161
Swan
WA
136,038
204,883
68,845
Springfield–Redbank
Qld
90,932
156,805
65,873
Dandenong
Vic
200,015
256,606
56,591
Auburn
NSW
97,821
152,752
54,931
Parramatta
NSW
150,866
202,796
51,930
SA3 NAME
Wanneroo
Campbelltown (NSW)
Source: Customised projections prepared for the Australian Government Department of Health by the Australian Bureau of Statistics (2017–2032)
By % change (> 60%) SA3 NAME
STATE
POPULATION PROJECTION 2017
POPULATION PROJECTION 2032
# CHANGE
Molonglo
ACT
5,715
20,782
263.6%
Serpentine–Jarrahdale
WA
29,566
63,757
115.6%
Bringelly–Green Valley
NSW
112,509
220,155
95.7%
Blacktown–North
NSW
100,976
193,164
91.3%
Rouse Hill–McGraths Hill
NSW
36,218
69,055
90.7%
Jimboomba
Qld
49,760
94,077
89.1%
Kwinana
WA
41,866
75,611
80.6%
Wyndham
Vic
246,455
444,605
80.4% 77.3%
Casey–South Wollondilly Springfield–Redbank
Vic
187,712
332,759
NSW
43,285
76,221
76.1%
Qld
90,932
156,805
72.4%
Cardinia
Vic
102,704
176,923
72.3%
Whittlesea–Wallan
Vic
233,187
398,667
71.0%
Melton–Bacchus Marsh
Vic
167,750
279,517
66.6%
Tullamarine–Broadmeadows
Vic
176,098
288,017
63.6%
Ormeau–Oxenford
Qld
132,732
216,042
62.8%
Palmerston
NT
36,888
59,864
62.3%
Source: Customised projections prepared for the Australian Government Department of Health by the Australian Bureau of Statistics (2017–2032)
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WHAT DOES A HIGH GROWTH AREA LOOK LIKE? I would expect a high growth area almost anywhere in Australia to have: • a high percentage of young families • high levels of ethnicity as many immigrants are very keen to purchase a house at their earliest convenience, and often with their community who are in a similar situation • many families with a mortgage and probably both parents working • a high demand for child care • low levels of socio-economics (normally what we expect with young families trying to purchase a house) • older cars – often needing work to remain on the roads • smallish modern houses, in fairly tight living (small blocks of land) • a high percentage of multigenerational families – up to three or even four generations. We need to think of this as an opportunity for certain products and services, and try to bring them into the areas. Demographics and population forecasting can tell us a great deal about an area, and help guide us in our decision making. Whether you are thinking of a business to operate for just five years or you’re looking long term for a franchise that will take you through 10 or 15 years of trading, the product or services you will be providing clients need to match not just the current market need but future demand. Of course, not every area has high growth like Wyndham (Vic), Bringelly (NSW) or Coomera/Pimpama (Qld) but there is still plenty of potential to be found. Stable populations still need to be adequately serviced with their existing needs. However, in a reasonably mature network of stores (McDonald’s, KFC, 7-Eleven) or service franchises across Australia (Jim’s everything), one of the best ways for the business to expand is to within the high-growth corridors. n
FRANCHISE BASICS
Structuring your franchise business
FOR SUCCESS
Understanding the business model and how it can impact your business
AARON MARCH
MELISSA STRAIN
Director of BlueRock Accounting
Associate director of BlueRock Law
T
he franchise business model offers business owners an exceptional opportunity when it comes to entrepreneurial growth, but your decision to join a franchise system doesn’t mean the structure of your business is set in stone. Within a complete franchise system there can be a number of businesses operating at different levels, each of which is typically owned in a separate entity. To add more complexity, there are a number of different types of entities that can own a business. Confused? We don’t blame you. But once you have a handle on the different types of business models and legal entities, and their advantages and disadvantages, it’s a lot less daunting to decide on the structure of your business. First, we need to consider your role within the franchise system.
WHAT IS YOUR ROLE IN THE FRANCHISE SYSTEM? There are various levels of involvement you can have in a franchise system, which can include: • franchisor: grants a licence to a third party for the conducting of business under their brand name • master franchisee: granted exclusive rights by the franchisor to grant sub-franchises within a whole country, state or region • franchisee: granted the right to operate one franchised business by the franchisor • sub-franchisee: the same as a franchisee but granted a franchise by a master franchisee (rather than directly by the franchisor).
There are a few considerations at play. Are you going into business with the franchisor? If so, you might be entering into a joint venture. Are you being granted exclusive rights to a whole country, state or region in which you will grant sub-franchises? If so, you will be appointed as the master franchisee. As is most often the case, if you are being granted the right to operate one franchised business, you will be operating that business as a franchisee (or sub-franchisee in the case there is a master franchisee involved). Franchisees then need to turn their attention to understanding each of the main entity structures available to them so as to make an informed decision upon entering the franchise agreement.
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WHAT ARE THE KEY BUSINESS MODELS FOR FRANCHISEES TO CONSIDER? There are a few key points to consider when deciding which structure is best suited for you: 1. involvement in the business: family, business partners, etc 2. personal liability and asset protection 3. tax implications (while you are operating the business and on sale of the business) 4. cost and complexity. The below summary gives you an overview of the key aspects, advantages and disadvantages of the most common franchisee business structures. SOLE TRADER A sole trader is simply an individual running a business – ultimately … you! The individual is the owner of the business and the business will be in your name. This means you’ll personally control and manage the business. Advantages • This is the simplest and cheapest structure to set up. As there is no formal structure, as a sole trader you just need to apply for an ABN (Australian Business Number), register for GST and you’re good to go. Disadvantages • Operating a business as a sole trader provides no protection of your personal assets. Therefore, if your franchise business fails and you have debts, you may be at risk of losing those assets (for example the family home, if it is held in your name). • As a sole trader you will be taxed at your personal tax rate and will not have access to various concessions available if using, for example, a company. If your business is performing well, you may be paying tax at a higher rate than the company rate. If you’re operating as a sole trader, it’s critical that you have all the appropriate insurance in place to cover you and your personal assets if something goes wrong.
COMPANY A company is a separate legal entity that is capable of entering into contracts as distinct from the owners (shareholders) of the company. The rights and responsibilities of the shareholders should be set out in a Shareholders Agreement. Companies are run by appointed directors who themselves have various duties and obligations in respect of the company under the Corporations Act 2001. Advantages • A company provides an extra layer of protection of personal assets. • Except in limited circumstances (ie where the company is trading insolvent), company directors are not personally liable for the debts of the company unless the directors personally guarantee the obligations of the company. • Although it is very common for franchisors (and landlords) to require personal guarantees from company directors, there may be other company debts (such as debts with unsecured suppliers or creditors) that will not fall to the directors if the company is unable to pay. As a company director, you can be personally liable for unpaid PAYG and superannuation. • Companies are entitled to tax benefits, which are not available to sole traders or partnerships, and pay tax at a fixed rate.
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•
You can have multiple owners of a company by each party owning shares in the company. Disadvantages • There is a cost involved in setting up a company. • A company involves greater financial reporting obligations and therefore additional annual costs. TRUST A trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries. While in legal terms a trust is a relationship, not a legal entity, trusts are treated as taxpayer entities for the purposes of tax administration.
FRANCHISE BASICS The trustee is responsible for managing the trust’s tax affairs, including registering the trust in the tax system, lodging trust tax returns and paying some tax liabilities. Beneficiaries (except some minors and non-residents) include their share of the trust’s net income as income in their own tax returns. The trust is governed by a Trust Deed. There are two types of trust generally used in respect of business: a discretionary trust and a unit trust. A discretionary trust enables the trustee to distribute income to the beneficiaries as the trustee sees fit, whereas the income of a unit trust is distributed based on fixed proportions. Advantages • Trusts are generally established for taxation purposes. If all the income of a trust is distributed to the beneficiaries, the trust pays no tax; tax is paid by the beneficiaries based on their own marginal rate. • Where the trustee of the trust is a company, the same asset protection benefits are available as mentioned above. Disadvantages • Trust structures encourage distribution of all income to avoid a higher tax rate, and so this can be a hindrance if the business requires ongoing working capital. • Setting up a trust is the most expensive structure, especially if the trustee is a company.
one partner has more assets at risk than the other. • Another risk is if the partnership relationship breaks down. This can cause significant headaches and disruption to the operation of the business. • Tax is paid by the partners at their normal individual rates on the share of their profits that they receive under the partnership arrangement. This may not be advantageous, depending on the level of income generated in the business. When people go into business with each other, they often call each other “business partners”, even when they run a business as joint shareholders of a company. It’s important that you understand the differences and risks of your business structure.
PARTNERSHIP If you are considering entering into a franchise with someone else (whether that be an individual, company or trustee of a trust) you might consider entering into the agreement as a partnership. If you intend to operate the business as a partnership, you will need a Partnership Agreement, which will set out the ownership of capital, distribution of profits, mechanisms for decision making and processes for resignation or appointment of partners. Advantages • Partnerships are relatively inexpensive to set up when compared to other business structures. Disadvantages • As with sole traders, a partnership doesn’t provide much asset protection. Partners are jointly and severally liable; therefore, each partner may be liable for full debts owed to creditors. This needs to be taken into consideration if
This is a general summary of the different types of structure available to you as a franchisee. When deciding which structure is the most appropriate in your circumstances, you’ll need to consider a number of factors, starting
JOINT VENTURES In the market, you will often hear the term joint venture thrown around. In relation to franchising, it generally refers to a situation where you and the franchisor co-own a site/outlet/business (franchisee business). An incorporated joint venture refers to a situation where you and the franchisor co-own shares in a company that owns the franchisee business. Whereas generally, with an unincorporated joint venture you and the franchisor are partners in a partnership that owns the franchisee business.
with who is going to be involved in the business, the level of risk involved, the amount of income you anticipate generating and the tax implications of each structure. In some cases, the appropriate structure may include more than one of the above entities (for example where the shareholders of a company are a trust). It is important to obtain independent legal and accounting advice to determine which structure is the most appropriate for you. As always, when it comes to business it’s best to reach out to a trusted accounting advisor to help you make the right decision when it comes to structuring your business. n Aaron March is director of BlueRock Accounting and Melissa Strain, associate director of BlueRock Law. BlueRock is an Australian entrepreneurial advisory practice that works with founders and business owners to connect them to an incredible community and help them reach their business and life goals.
TIME TO MAKE A DECISION!
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FRANCHISE BASICS
10 THINGS TO CONSIDER BEFORE PARTNERING TO BUY A FRANCHISE Finding a business partner can be a way to start a new franchise by sharing risk, combining skills and pooling capital. MAGDALENA SCHOEMAN Belgravia Health & Fitness
S
ometimes there are benefits to buying a franchise with a partner, or a group of investors. While this arrangement doesn’t suit everyone, there are situations where it may be advantageous There are different types of partnerships. You may partner up and both work in the business day to day, while other arrangements involve “silent” financial partners. If you are considering partnering up to buy a franchise, it’s worth doing some groundwork to understand how to make this sort of arrangement work as smoothly as possible. Who you partner with is as big a decision as what franchise to buy.
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Here are 10 things to consider before entering a partnership to buy a franchise:
1. WHO WILL THE NOMINATED MANAGER BE? Most franchisors will need you to appoint one person to be their “go to” for communication and decisions. Each person in the partnership will need to agree with this arrangement. Discussions can happen behind the scenes between investors but ultimately that one person has the final authority with the franchisor. 2. WHO IS RESPONSIBLE? While there is a lot of head office support for franchisees for various aspects of running the business – from marketing to operations – there is still plenty to be done to keep a franchise running optimally. Who will be working in the day-to-day business, if anyone? And how will the other “back end” responsibilities be split? Map this out ahead of time as part of a business plan so it’s clear and everyone is happy with what’s expected of them. 3. PERSONAL GUARANTEES. Whether you’re working in the business or just a financial partner, most franchisors (and landlords too) will require all the franchisees to personally guarantee the agreement. Partners need to be prepared and comfortable with this or the arrangement may not progress. 4. TRANSPARENCY. Are all investors comfortable being transparent about their financial position? If those involved aren’t prepared to be honest and open about their finances, then it may not be a viable arrangement because transparency will be required as part of the purchase process and to avoid any surprises between partners. 5. COMPATIBILITY. Just because a potential partner may be a friend or a family member, it doesn’t guarantee a good partnership. Selecting a partner who complements your traits and skill sets will make for a stronger and more wellrounded business. Are you able to get along with a partner? Are you sure they will pull their weight? Ask yourself the hard questions before committing. 6. ALIGNED EXPECTATIONS. Make sure both you and your partner/s are clear on goals and what you’re hoping to achieve, in what sort of timeframes. Where do you want to be in five years? What about 10? Do you have an exit strategy? Make sure you both feel there’s a balance and that you are on the same page to avoid disappointments and disagreements. 7. LEGAL ADVICE. Nobody should ever go into any type of business assuming everything will go to plan. Get advice and have agreements drawn up that cover the most common hurdles you may encounter so that all parties involved have a level of protection. This should involve defining each person’s role in the business, figuring out what to do if one person wants to dissolve the partnership, determining how to share profits and brainstorming ways to handle disputes. 8. ON BOARD WITH THE FRANCHISE MODEL. A franchise is a unique business offering. It allows owners to get a business up and running quickly and efficiently with the confidence that comes with the backing of the franchisor, the groundwork that’s already been done to refine the business model and build the brand and the support that’s behind you when needed. The business model relies on some level of rules and framework to ensure consistency across the network, as this consistency is the strength of the franchise model. All partners need to be comfortable with this so that it doesn’t create any tension down the track. 9. ENTHUSIASM. It’s important that all involved have the same level of enthusiasm and dedication to making the business work, no matter what level they will be invested in. When energy levels are too disparate, it can mean more pressure and burden falls to one person, which isn’t fair and can, over time, wear that person down. 10. COMMUNICATE, COMMUNICATE, COMMUNICATE. No matter what happens or the nature of the arrangement, the best chance of success comes to those who openly communicate. There is no point partnering with someone who can’t take that approach, as it’s likely to fail. Working with a franchise partner can help you ramp up business growth and expansion more quickly and easily, but it pays to choose a partner with the same care and attention you would when selecting franchise opportunities. Due diligence from the start prevents problems down the line. n Magdalena Schoema is new business manager, Belgravia Health & Fitness, which has Genesis Health + Fitness, Coaching Zone and Ninja Parc Indoor Obstacle Course in its portfolio. It is also affiliated with Jump! Swim Schools and BK’s Gym and Swim.
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FRANCHISE BASICS
Vaccines in the workplace Can we mandate the Covid vaccine in the workplace? JENNA PAULIN Now Actually
T
his is the million-dollar question at the moment across the Australian employment landscape. With so much uncertainty in the marketplace as to what businesses can and cannot do, we’ll unpack some of the key points for you. Where do businesses start? In short, it depends on the type of business and the industry they are in. The Australian Prime Minister at time of writing has confirmed that the vaccine will not be mandated across the country. So how do businesses tackle this issue? The Fair Work Ombudsman has provided some guidance on the matter but there are still a number of factors to be considered before a business can make the decision as to whether they can mandate the vaccine. It comes with no surprises that there is not a specific law that requires an employee to receive a vaccination. Businesses should do a case by case assessment as to whether or not mandating the vaccination in their business is “lawful and reasonable”. There are specific circumstances where this doesn’t apply, but it is best you check with your industry body. Fair Work has stipulated that for a direction to be lawful, it needs to comply with any Employment Contract, Modern Award or Enterprise Agreement, and any commonwealth, state or territory law that
applies (for example, an anti-discrimination law or OH&S law). There are several considerations to make when deciding if you can or should make the vaccine mandatory. Advice needs to be sought from an HR, legal, safety and operational perspective to enable a business to make an informed decision. Such considerations might be: • the nature and industry of each workplace (for example, the extent to which employees need to work in public facing roles, whether social distancing is possible and whether the business is providing an essential service) • the extent of community transmission of Covid in the location where the
• • • • •
direction is to be given, including the risk of transmission of the Delta variant among employees, customers or other members of the community the effectiveness of vaccines in reducing the risk of transmission or serious illness, including the Delta variant work health and safety obligations each employee’s circumstances, including their duties and the risks associated with their work whether employees have a legitimate reason for not being vaccinated (for example, a medical reason) vaccine availability.
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A FOUR-TIER APPROACH
WHERE TO FROM HERE?
Fair Work has created a broad four-tier approach to assist employers in making an informed decision regarding the Covid vaccine in the workplace. This framework seeks to address the above considerations. However, even this framework can create conflict and confusion as an employee may sit across multiple tiers or a business may have employees in several tiers.
The “fair and reasonable” approach when making these decisions must come into play. Is your direction to mandate considered a lawful and reasonable direction? This is what it will come down to if you are challenged. Do you need to mandate the vaccine? You might find that your employees have already been vaccinated so mandating it is not necessary. It has been determined that you are able to ask your employees if they have been vaccinated. Again, privacy will come into play so you’ll need to be mindful of this. Effectively, each business situation must be dealt with on a case by case basis. There currently isn’t any case law that we can rely upon, and given the changing landscape no one is an expert on this topic. All factors must be taken into consideration to make an informed decision on mandating the Covid vaccine in the workplace. This topic has much debate, and what is reasonable for one business is not necessarily reasonable for another. It will continue to be a contentious issue moving forward. n
•
•
•
•
TIER 1 WORK: Where employees are required as part of their duties to interact with people with an increased risk of being infected with coronavirus (for example, employees working in hotel quarantine or border control). TIER 2 WORK: Where employees are required to have close contact with people who are particularly vulnerable to the health impacts of coronavirus (for example, employees working in health care or aged care). TIER 3 WORK: Where there is interaction or likely interaction between employees and other people such as customers, other employees or the public in the normal course of employment (for example, stores providing essential goods and services). TIER 4 WORK: Where employees have minimal face-to-face interaction as part of their normal employment duties (for example, where they are working from home).
Jenna Paulin is managing director of HR firm Now Actually which specialises in providing HR support for franchise networks.
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Is your direction to mandate considered a lawful and reasonable direction? This is what it will come down to if you are challenged.
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FRANCHISE BASICS FRANCHISE BASICS
LEARNING THE
BUZZWORDS
Like any area of endeavour, the franchise sector has its own particular terminology that new franchisees need to understand.
ACCREDITATION
a banking loan scheme that provides franchisees with some of the finance they may need when buying the franchise. It is based on a bank’s understanding of the brand and its business methods. While this funding option is popular, it is not common across the sector.
ASSIGNMENT
when a franchisee sells their business to a new franchisee, it is referred to as assignment. It is common for the franchisor to retain the right to interview and accept or reject any proposed buyer. The franchisor may also have the right to buy back the franchise. The vendor franchisee can set the value of the franchise.
BUSINESS-FORMAT FRANCHISE
a business model with four criteria – a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.
COMPANY-OWNED UNITS
locations run by the franchisor rather than a franchisee.
FIELD MANAGER
an individual tasked with managing a group of franchisees, with a focus on relationships, brand alignment, and sales and profit. This role might also be called business development manager or area manager.
FIXED SERVICE FEE
franchisees may pay their franchisor a weekly or monthly fixed-amount payment, or a service fee calculated as a percentage of turnover (above a minimum payment).
FRANCHISE AGREEMENT
this is the legally binding business between the franchisor and the franchisee.
FRANCHISEE
an individual who runs a franchised business using the intellectual property of the franchisor.
FRANCHISEE ADVISORY COUNCIL
a structure for franchisors to seek and receive feedback from their franchisees. Participating franchisees may be elected or chosen by the franchisor.
FRANCHISE FEE
CONVERSION
an up-front cost paid to the franchisor. It covers the use of the brand name and business system.
DISCLOSURE DOCUMENT
a mandatory code that governs franchising in Australia. It is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC).
an existing independent business that joins a franchise network.
this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee in accordance with the Franchising Code of Conduct.
DUE DILIGENCE
the process of conducting in-depth research on a business before purchase.
FRANCHISING CODE OF CONDUCT
FRANCHISE TERM
this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.
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FRANCHISOR
the franchisor grants permission to the franchisee to conduct business using its intellectual property, brand name, working methods and marketing.
GREENFIELD SITE
OPERATIONS MANUAL
the franchisee’s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.
REGIONAL FRANCHISEE
a brand new site.
GOODWILL
this is a calculation of the value of trade in an existing business that is likely to continue and benefit the incoming business owner.
INFORMATION STATEMENT
this is a two-page standard document that outlines what franchise buyers need to know about franchising.
INTELLECTUAL PROPERTY
similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area.
RENEWAL
once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct. There is no automatic right of renewal.
this term refers to the trademarks, copyright, know-how, trade secrets, designs, patents, branding, operational manuals, methodologies and/or recipes franchisors license to franchisees.
ROYALTY
LICENSE
TERMINATION
LOCAL AREA MARKETING
TERRITORY
MARKETING & ADVERTISING LEVY
TOTAL INVESTMENT
the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise. often abbreviated to LAM, this is marketing the franchisee is responsible in their territory or designated marketing area. a regular flat or percentagebased-fee paid into a centralised advertising or marketing fund.
MASTER FRANCHISEE
a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.
MULTI-UNIT FRANCHISEE
a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.
fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit. the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement. is the area assigned to franchisees for their business. Territories can be exclusive or nonexclusive. the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.
TURNKEY FRANCHISE
a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.
WORKING CAPITAL
the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.
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FRANCHISE BASICS FRANCHISE BASICS
BUYING A FRANCHISE:
THE PROCESS
It can take three months or 18 months to find and open up a franchise. This is the typical path that will take you to franchise ownership.
1. MAKE AN INQUIRY
2. FRANCHISOR RESPONDS
3. FIND OUT MORE
4. CONFIDENTIALITY
5. FIRST MEETING
6. CONDUCT DUE DILIGENCE
7. PROVE YOURSELF
8. OTHER STEPS
9. DON’T RUSH IT
Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.
The franchisor will ask you to sign a confidentiality agreement before sharing sensitive information with you. Expect a copy of the disclosure document, draft franchise agreement and the Franchising Code of Conduct, plus an information statement. Your franchisor might also send more commercially sensitive information to help you consider the viability of the franchise opportunity and build your business plan.
You will need to create a business plan and show to the franchisor you have the capacity to take ownership of and drive this particular franchise unit. A follow-up meeting will enable you to ask further questions following on from your due diligence, and for the franchisor to further quiz you.
If you have emailed an inquiry, typically a franchisor will send out an information pack to you, and follow this up with a phone call.
This is the time you will get a much clearer idea of the business, and the franchise team you will be working with.
Some brands can include a number of interviews, try-before-you-buy work experience or a panel review. The franchisor might ask you to complete a profiling assessment.
Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.
This is a crucial stage, so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice, or that you have decided not to do so. Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.
The process to get from inquiry to sign-up could be a matter of weeks, or it could be months. Buying a franchise is a significant, long-term commitment. It is important not to rush the process.
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THE
INFLUENCERS
Who will be driving the business that you invest your hard-earned dollars into?
W
hat influence will the franchise team have over your future? Here we look at key roles in a larger franchise business that will be shaping the direction and operation of the network. Not every business will include each role and in a small franchise set-up the franchisor will be wearing several, or all, of these hats.
in the company’s long term success. Any funding for marketing or development initiatives will be approved by the CFO. The CFO manages the finance and accounting divisions and takes responsibility for the accuracy and timeliness of the company’s financial reports.
CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR
A CIO has responsibility for the implementation, management and efficacy of information and computer technologies, vital in today’s digital world. It’s the CIO who will investigate the benefits of any proposed technological change, and then implement the system - a website or inventory software, for instance. The role is increasingly strategic and directed to gaining and maintaining the competitive advantage of a business.
The top ranking executive in a company, the CEO is focused on directing high level company strategy and growth. In a smaller company, the CEO’s role includes operational business decisions and they may be much more hands-on on a daily basis. In a larger business the CEO may have a position on the company’s board, and act as the link between corporate operations and the board of directors. The founder of a franchise typically takes a CEO role.
CHIEF MARKETING OFFICER
CHIEF OPERATING OFFICER/ OPERATIONS MANAGER
A COO/operations manager essentially works with the CEO to implement the strategy, making the decisions on how to achieve the goals set out. The role is typically responsible for daily operations, production, research and development, creating operational policies, and HR. The operations manager can influence the franchise business performance through resource allocation, cost reduction, improved efficiencies, the introduction of high quality products and services. In a franchise where the founder is the CEO, the COO may be the more experienced executive.
CHIEF FINANCIAL OFFICER
CHIEF INFORMATION OFFICER
This senior executive reports to the CEO but plays a strategic role in the way the company manages its finances, investments, and capital structure and is influential
The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations. Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.
GENERAL MANAGER
A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations. The responsibilities of the role may be incorporated into a CEO role.
FRANCHISE RECRUITMENT MANAGER
The franchise recruitment manager is responsible for attracting franchise buyer enquiries and for the recruitment selection process, increasingly working with managers from other divisions and
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the CEO or MD in the final selection. The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.
BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:
Variously called a BDM, regional manager, field or area manager, this role is the interface between the franchisee and franchisor. Responsibilities include helping franchisees achieve their business goals, ensuring brand compliance across the network, communicating brand direction and strategy to franchisees.
TRAINER
The person or team who will set up a franchisee to run the business. Responsibility for training may fall under operations or general management. Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.
PR AND COMMUNICATIONS
How the brand is presented in the media, how the brand engages with social media, how brand damage is mitigated...all these are influenced by the team that handles PR and corporate communications. This may be an internal team or an external agency.
SUPPORT TEAM
The individual employees at head office who manage, monitor and deal with queries, requests and complaints from franchisees.
FRANCHISE ADVISORY COUNCILLOR A franchisee member of the Franchise Advisory Council which is typically involved in providing frontline feedback from franchisees to the franchisor, and in assessing and trialling new initiatives.
FRANCHISE BASICS FRANCHISE BASICS
30
THINGS TO CHECK R BEFORE YOU INVEST
Get set prior to your purchase with our easy checklist. Just tick off the must-do items.
Are you confident in the franchisor?
Have you worked out your operating costs?
What are the franchisee and franchisor obligations?
Have you seen a disclosure document?
Do you know the term of the agreement?
What training is available and who pays for it?
Is the franchisor compliant with the Franchising Code of Conduct?
Do you need a permit or license to operate the business?
Who owns the intellectual property and what is licensed to the franchisee?
Have you run a credit check on the franchisor?
Is the business operating from fixed or mobile premises?
What marketing will the franchisor implement?
Does the franchisor have a history of litigation? Are there any cases coming up?
Have you checked the lease? Is there a right to renew?
What marketing is your responsibility?
If you are buying an existing business, have you seen current financial statements (balance sheets, profit and loss, tax returns)?
Does the length of the lease match the franchise term?
What is the dispute resolution process?
Have you evaluated the financial returns?
What are the store fit-out costs?
Do you know what it is like to be a franchisee?
If you are buying a greenfield (brand new) site, do you have sales and profit examples and know the method behind the calculations?
Are you working within a territory? If so is the area exclusive?
Do you have an exit plan?
Do you know all the expenses franchisees are required to pay?
Are you restricted in your product purchase?
Have you spoken to former and current franchisees about the business?
What royalties are there and how are they calculated?
Are you required to reach a minimum performance level?
What restrictions are there on the franchisee and guarantor operating a similar business?
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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)
FRANDATA
The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code. The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure. Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.
FRANData is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct. FRANData also provides reports on the franchising sector. Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.
Visit: WWW.ACCC.GOV.AU
Visit: WWW.FRANDATA.COM.AU
BUSINESS.GOV.AU
FRANCHISE.ED
This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business. New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists. Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training Visit: WWW.BUSINESS.GOV.AU
FRANCHISE COUNCIL OF AUSTRALIA
The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia. Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees. Visit: WWW.FRANCHISE.ORG.AU
FRANCHISEBUSINESS.COM.AU
This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports. FranchiseBusiness.com.au lists franchising opportunities available in Australia. Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand. Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.
Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice. FranchiseED is a Not for Profit which provides education to encourage best practice; provides consultancy services; and provides access and dissemination of quality franchise research. The revenue generated by these programs will help support the social enterprise programs of FranchiseED. It extends upon the work undertaken previously by the Franchise Centre at Griffith University with the transformation into FranchiseED. Visit: WWW.FRANCHISE-ED.ORG.AU
THE FAIR WORK COMMISSION
Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australia’s workplace relations system but have different roles. The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation. The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions. Visit: WWW.FAIRWORK.GOV.AU
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WE HAVE A NEW LOOK! octomedia.com.au
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Contact: Dan Snyder Contact: franchise@7eleven.com.au www.7eleven.com.au/franchising
Head of Franchise Relations & Development
Start up costs: $400,000 to $1,000,000
ambertiles.com.au
franchising@ambertiles.com.au Start up costs: Dependent on store and site: $280K-$450K plus stock.
PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 700 stores across VIC, ACT, NSW, OLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising. When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week. We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au
PROFILE: We are the premium supplier of quality floor tiles, wall tiles, natural stone, pavers, retaining walls, and synthetic grass to retail, trade and designer customers. The first Amber store was opened in 1973, and the first store was franchised in 1993. Today we have an enviable base of 20 franchised stores and 8 company stores. Now is an exciting time to join Amber. Amber has ambitious plans utilising the proven Amber Franchise System. So, if you’re: • Highly motivated to achieve • Seeking personal and financial independence • Enjoy serving customers and enjoy working as part of a team Then, an Amber franchise may be the answer for you.
Phone: 1300 097 857 Contact: Franchise Sales Team Sales.au@inxpress.com au.inxpress.com/franchise-opportunities
Phone: 0429 616 799 Contact: Brendon Cooke brendon@bcmc.solutions www.bcmc.solutions
Start up costs: $64,950 + GST
Start up costs: $50,000 + GST PROFILE:
PROFILE: BCMC Safety Solutions is a professional safety compliance company. We specialise in the installation and maintenance of safety requirements to meet state and federal legislation for residential rental properties. BCMC Is all about making agents lives easier and tenants lives safer. Operating in the essential safety maintenance sector, this legislative based subscription business model is perfect for those chasing a secure income and loyal customer base. Purchase a exclusive BCMC franchise territory and benefit from our streamlined operational process, we will even take care of all your invoicing and can even schedule your jobs! Resulting in more time for yourself and for dollar productive activities.
InXpress is a global express logistics business with over 400 franchisees, located in 14 countries, providing consultative services and innovative software to SMEs. Founded in 1999, InXpress has a long history in managing successful businesses, with the know-how to train and support franchisees in running a sales and business management franchise. InXpress has established strong relationships with global courier partners, providing access to highly competitive rates, leaving you free to concentrate on sales and build your own successful and profitable start-up business: • Low entry and ongoing costs • Proven model for over 21 years, constantly evolving • Comprehensive training and ongoing coaching • No inventory, warehousing, vans or trucks • No employee base initially, opportunity to grow • Potential to earn unlimited passive income • Ability to work from anywhere! For more information about becoming an InXpress Franchisee, contact us now.
Phone: (02) 8962 8526 Contact: Maria Chemali franchise@kwikkopy.com.au www.kwikkopy.com.au/franchise Start up costs: $150,000 - for a New (Greenfield) Centre PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia. Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance. As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary.
A-Z
Inside Franchise Business brings potential franchisees news, insights, advice and a directory of available franchise opportunities: it is your essential guide to buying a franchise in Australia.
A Kwik Kopy franchisee is young at heart with business experience,
entrepreneurial flair and most of all – an absolute passion for customer service. We have both existing and new locations for sale throughout Australia.
L I S T I N GS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
JEFF PURSER
HEAD OF SALES, OCTOMEDIA +61 408 401 076 JEFF.P@OCTOMEDIA.COM.AU
www.franchisebusiness.com.au
Visit our website to find out more!
L I S T I N GS FOR A-Z LISTINGS ENQUIRIES CONTACT:
GERRY LITTLE
FRANCHISE BUSINESS SALES 0414 455 772 GERRY.L@OCTOMEDIA.COM.AU
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A-Z LISTINGS
Contact: Victoria Head Details: Franchising@madmex.com.au +61 468 952 900 Website: franchising.madmex.com.au Start up costs: $300,000 - $500,000
A-Z LISTINGS PROFILE:
Do you want to run a business that is both successful and makes you feel good about what you’re doing? Mad Mex delivers flavourful, honest, and healthy Mexican food that is packed with flavours customers crave.
Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au PROFILE: Morgan Mac Lawyers is an experienced commercial law and commercial litigation firm with a specific focus in franchising law.
Join the Mad Mex familia and you’ll:
Bill Morgan, has over 20 years’ experience in complex commercial litigation involving disputes between franchisors and franchisees. Since 2016, Morgan Mac Lawyers has acted in over 40 franchise dispute mediations.
• Become part of one of Australia’s fastest-growing fast dining franchises.
The franchise related legal services Morgan Mac Lawyers provides include:
• Take ownership of your business and use your experience and acumen to deliver an award-winning customer experience.
• Commercial litigation • Alternative dispute resolution and franchise mediation • Franchise Dispute solutions • Corporate and business structuring • Purchase or sale of franchise businesses
• Get access to a suite of resources and the support of a dedicated Operations Manager. Find out more and start your franchise journey today at franchising.madmex.com.au
Contact: Peter Fiasco
Fax: 03 8699 1555
franchiseenquiries@snap.com.au
Contact: Anna Goncalves
www.snap.com.au/franchising/franchising.html
franchising@questapartments.com.au Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of properties across Australia, New Zealand, UK and Fiji. For over 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended-stay business travellers. Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia.
Advising on franchise documents Franchise employment law advice Preparing franchise documents Risk and compliance advice Commercial and retail leasing Privacy and privacy policy advice
Phone: 0477 929 393
Phone: 1800 809 913
www.questfranchise.com.au
• • • • • •
Start up costs: $150,000 to $600,000 PROFILE: When you elect to take ownership of a Snap Franchise, you are not only making a decision to join one of the leading franchises in Australia, with a history of innovation that dates back over a century, you will be joining the Snap family, who provide you with all the support that you need to succeed. Snap is a world leader in technology and equipment and a franchisor that works with our Franchisees to get them set for success, all whilst living the lifestyle they deserve. Take the step and come and see the SNAP Difference today!
To become a Quest Franchisee, you must be prepared to make a significant investment and commitment to the business, both personally and financially.
Phone: 1300 549 200 Contact: Kevin Bugeja kevin@franchise4u.com.au walkersdoughnuts.com.au Start up costs: $175,000 - $300,000 PROFILE: At Walker’s Doughnuts, we create the World’s Tastiest Doughnuts! Soft, melt in your mouth Pillows of Perfection; our Doughnuts are created by Doughnut Lovers for Doughnut Lovers. Now it’s your turn to own a piece of something special. A simple model with minimal baking in-store; just filling, decorating & displaying! Our famous varieties include our signature Vanilla Glazed, Boston Cream, Bavarian Custard Cream, Triple Choc, French Toast, Rocky Road, Raspberry Cheesecake and many others. Our Hot Jam Doughnuts are freshly cooked to perfection and available all day long! But that’s not all! Together with our award-winning Black Rose Coffee blend, our Classic Hot Dog flavours, Traditional Milkshakes and specialty Heritage Sodas imported exclusively from the USA, you’ll find us an unbeatable and irresistible offering.
Inside Franchise Business Executive is a dedicated resource for franchise professionals It provides essential news, opinion and expert advice, alongside a suppliers directory. Visit our website to find out more!
A-Z A-Z NOW FRANCHISING in Victoria, SE Qld, NSW & ACT with opportunities available NATIONWIDE!
executive.franchisebusiness.com.au
L I S T I N GS
L I S T I N GS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
JEFF PURSER
HEAD OF SALES, OCTOMEDIA +61 408 401 076 JEFF.P@OCTOMEDIA.COM.AU
FOR A-Z LISTINGS ENQUIRIES CONTACT:
GERRY LITTLE
FRANCHISE BUSINESS SALES 0414 455 772 GERRY.L@OCTOMEDIA.COM.AU
NOV/JAN 2021-2022 | 74 | WWW.FRANCHISEBUSINESS.COM.AU
New Year New World New Opportunities
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